Thanks guys, I was thinkin that the guy at the computer store was smokin' crack. Yeah as far as I know crazybill is that the difference between software and hardward modems is exactly that. Software modems use software in the decoding/encoding processes, ie. a winmodem. And hardware modems do it all on the board. I would think that a hardware modem would be faster on a slower system, since it's not using up processing power to run the modem functions. And from what I remember hardware modem usually run better/easier/less troublesome. But it's been four or five years since I've done any hardcore computer stuff, so the software modems have probably over taken the hardware ones in performance.
But do you think there's any validity to the whole "software modems won't work on a PI" because of the MMX2 thing? That I had not heard before.
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