I lived in Canada for 2 years when I was young. I was living in Canada when I was young. I was living in Canada when I was being young.
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Amir OghlowI lived in Canada for 2 years when I was young.Fine and standard.
Amir OghlowI was living in Canada when I was young.This sounds wrong to me. Past progressive normally refers to a past matrix situation for another past action:
Amir Og
Amir OghlowI was living in Canada when I was young.I, too, see this one as anomalous. "when I was young" seems to refer to a definite period of time. "was living", being a past continuous, must refer to an indefinite period of time. It may not be immediately obvious, but there is at least a subtle contradiction here.