Sentence: He had called and I said I was working on that

[Sureshvemuri]

The context is:
I am working with a file. At that time, Person-A called me and asked about the file.
After that,after 30 Minutes, Person-B asked me what happend.
My reply was -"Person-A had called and I said I was working on that- is this correct".
Here, WAS WORKING- correct?

Whenever we tell about the past things, all presentence should be converted into Past tense? Like "is working "---> "was working".

Second thing, whenever we use "thought" - the remaining things should be changed into Past.
Ex: At 3.00 am, Person-A is on the way. Someone asked me about Person-A.
I said - "Person-A is on the way".
After 30 minutes (3.30 am), Person-B asked me about Person-A. At this point also, Person-A HAS NOT COME.
My reply (at 3.30 am)- "I thought Person-A was on the way". Is this correct - Because Person-A is STILL on his way. This actions has not finished yet.

[Mister Micawber]

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These are correct:

First thing:　　Person　A called and I said I was working on that。

Second thing: I thought Person A was on the way
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Native English teacher at Mister Micawber's

[Sureshvemuri]

My confusion is with using "Had".

Since there are two things happened, Called + My reply - Should not I use HAD CALLED instead of "Person　A called and I said I was working on that".
This is where I confuse.
My Question: If ONE SINGLE person did do things, then only should I use Had+Past tense.

[Mister Micawber]

.
No-- use past perfect sparingly. Use it only when ( 1 ) the sequence of the two past events is unclear or ( 2 ) when you wish to or need to stress the chronology of events.
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_________________
Native English teacher at Mister Micawber's

[Daemon99]

[Mister Micawber]

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[Daemon99]

Sorry Mister Micawber and Suresh, I forgot to mention that we could use that sentence when somebody asked us why we missed the train :)

And as you said, The train left when we arrived at the station is very much possible.
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Non-native speaker of English
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I intend to live forever - so far, so good.

[Sureshvemuri]

[Mister Micawber]

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On the contrary, the past perfect still has its uses-- particularly in moments of ambiguity.
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_________________
Native English teacher at Mister Micawber's