Yes, you can connect any standard phone (with an analogue interface) to either of the 2 FXS ports. If your phone can connect to the Telstra phone wall socket, then it can be used with a Vigor’s FXS port (though an RJ-11 adaptor may be required if your phone doesn’t doesn’t already have an RJ-11 plug)

This includes “digital” cordless phones, since it is only the wireless link between the base station and handset which is digital.

The only phones which cannot be connected are the ‘keyphone’ type systems found in some small businesses.  These usually have separate buttons for each line and each extension, on each extension, to allow everyone in the office to be the telephonist.