The persistent proximity of insulating and metallic phases, a puzzling characterestic of manganites, is argued to arise from the self organization of the twofold degenerate e_g orbitals of Mn into localized Jahn-Teller(JT) polaronic levels and broad band states due to the large electron - JT phonon coupling present in them. We describe a new two band model with strong correlations and a dynamical mean-field theory calculation of equilibrium and transport properties. These explain the insulator metal transition and colossal magnetoresistance quantitatively, as well as other consequences of two state coexistence.
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