DA20 ON ENGINEERING FLT LOSES RIGHT ENGINE AT FL380. COMMUNICATION CONFUSION DURING RECOVERY RESULTS IN ALT DEVS AND POSSIBLE LOSS OF SEPARATION.

Narrative

CONDUCTING RVSM FLT TEST AT FL380; EXPERIENCE ENG FLAMEOUT ON #2 ENG. ADVISED ATC OF ENG FAILURE AND REQUESTED DSCNT TO FL250 FOR ENG RELIGHT. ATC ASSIGNED US FL350 AND HDG OF 270 DEGS. DURING THE DSCNT ATC ASSIGNED US DIRECT ABC DSCNT TO FL240. DURING THE DSCNT THROUGH FL270 THE CTLR TOLD US TO DSND TO FL230 AND EXPEDITE THROUGH FL240. WE REQUESTED FL310. THE CTLR CLRED US TO 10000 FT THEN HE RECLRED US TO 11000 FT. WE LEVELED OFF BTWN FL240 AND FL250 BRIEFLY TO RELIGHT THE #2 ENG FOR LESS THAN 1 MIN. THE CTLR THEN ASSIGNED US FL240. I WANTED CLARIFICATION WHAT ALT WE SHOULD BE AT. THE COPLT ASKED FOR FL310. THERE WAS NO RESPONSE FROM ATC. THEN A NEW VOICE CAME ON FROM ATC AND SAID DSND AND MAINTAIN FL240 IMMEDIATELY. WE DSNDED FROM FL255 TO FL240 IN LESS THAN 20 SECONDS. ATC THEN CLRED US TO 10000 FT. THE REST OF THE FLT WAS NORMAL. THE CONTRIBUTING FACTORS THAT LED TO THIS WERE AS FOLLOWS: THE FIRST THING WAS THE FACT THAT WE WERE DISTR BY THE ENG FAILURE AND DID NOT DECLARE AN EMER WHEN WE SHOULD HAVE. I ASSUMED ATC UNDERSTOOD THAT ENG FAILURE IS AN EMER. SECOND WE HAD A FLT TEST ENGINEER TRYING TO TALK TO US WHILE WE WERE TRYING TO FLY THE ACFT; GET THE ENG STARTED; AND TALK TO ATC; AND COMPLY WITH THEIR INSTRUCTIONS. THIRD; I WAS CONFUSED ABOUT WHAT THE CTLR WANTED US TO DO. THEN THERE WAS NO RESPONSE FROM ATC; SO I HELD MY HDG AND ALT UNTIL THE SUPVR CAME ON AND TOLD US WHAT TO DO. ALL OF THESE FACTORS LED TO A COM BREAKDOWN; AND DUE TO THE FACT THAT I WAS UNSURE OF WHAT ALT ATC WANTED ME AT; I DID NOTHING BUT MAINTAIN MY ALT AT FL255 AND STAYED ON MY CURRENT HDG BECAUSE I WAS NOT CLR ON WHAT ATC WANTED ME TO DO AND I FIGURED THAT IF I AM BTWN FLT LEVELS I WOULD NOT FLY INTO ANYONE.