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Line Busy message usually indicates a problem with dialing, if you know the number you are dialing is not busy. Check your dialing settings in WinFax to ensure you are dialing the number properly and that your area code, country code, etc are entered properly in WinFax. If you require a prefix to dial in your office for an outside line, you must include it in the Prefix settings (for example, Dial 8 for an outside line)

Here is a good test to determine if modem is answering or detecting incoming calls properly