Hi CB,
Apologies for not looking better into your problem, I was not paying attention to what you did exactly.
Following these instructions, I made a small example myself. First, something to understand is that the DropdownSearch fires an Event whenever the user selects an option, for which you specify a handler:

If you choose the "New Client Action" option from the menu, Service Studio automatically creates the right Screen Action (called "DropdownSearchOnSelect") with the right input parameter (called SelectedItem). The OnSelect Event has a single parameter, "SelectedItem", that is the input for the handler (hence the "SelectedItem" to "SelectedItem" mapping in the Event Handler - note that the left-most SelectedItem is the input parameter to the OnSelect handler and the right-most SelectedItem is the Event's parameter). Inside your OnSelect handler Action the input parameter (here SelectedItem) contains the selected value.
Looking at your code, we can see that your DowndownSearchLine action (which is a bit obscurely named, the default "DropdownSearchOnSelect" better describes what it's for) has a SelectedLine input, but instead of putting the Event's parameter "SelectedLine" in it, you input the Local Variable SelectedLine2, which of course doesn't contain anything at that stage.
So what you need to do is pass SelectedLine (the Event's Parameter) to the SelectedLine input of the handler, instead of the Local Variable SelectedLine2, and it should work. I don't think you need that Local Variable at all.