Fax Software

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This type of error is difficult to diagnose as it can be failing hardware (RAM, Fax Modem, Video card etc) , problems with an OS (Windows XP) component, conflicting hardware drivers, or other memory resident software (Anti-Virus?). If you see this error only in WinFax, it may be related to the fax modem hardware itself, or the drivers conflicting with other software.

Here are some items you can also check:
In WinFax Tools, click Logs & Phonebooks, then Check Send/Receive Log Limit. What does this report? If you are overloading the send or receive log, its possible strange errors may occur.

also try the following:

Reconfigure the modem in WinFax PRO/TalkWorks PRO:

In Program Setup, double-click Modems and Other Fax Devices or Modems and Communication Devices.
Select the modem you want to reconfigure.

Press & hold SHIFT and click Properties. You see the following message: “Your modem has not been configured to work with WinFax. Do you want to run the WinFax modem configuration wizard now?”

Click Yes, and click Next. Follow the Modem Configuration Wizard through, and click Finish.

Select the modem again, and click Properties.
Make sure that Communications Port is set to TAPI.
Test WinFax with the TAPI settings to see if errors persist.
If errors continue, try changing this setting to COMx (where x is the com port your modem is installed, usually this is COM3)

If you have access to a new (different model) modem, you can try uninstalling any modem in Windows, turn off the PC and then physically remove the fax modem from the PC. Boot the new PC without the fax modem, so it initializes Windows again without the fax modem, now shut down the PC and install the new modem according the the directions of the manufacturer.