my mother-in-law had this same problem.... are you using XP SP1?
there are a lot of issues about this.... the bigger problem (at least on her machine) is that her system restore doesn't work. it gives a BIG error that's related to RPC (Remote Procedure Call).
the fix was to tweak the registry. and supposedly the cause is a corrupted registry branch.
supposedly there are a couple of fixes....
1. install/reinstall SP1
2. the manual deletion of some registry entries.
i would check to see if your modem works on its own first. use dialer to try and call some phone number. check to make sure you get a dial tone. if it does work. try the SP1 thing.
the registry tweak should be your last option.
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aaarrrrrgggghhhh!!!!
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