Fax Software

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Dynamode makes a few different models of USB modem, which one do you have?
also what are the settings currently in WinFax for that modem?
and what are the results of a modem query in Windows? (this can be accomplished by following instructions here http://www.modemsite.com/56k/xpdevmgr.asp )
It could be a compatibility problem, or a setup issue. It also can be a problem with the fax modem the person is using to send you a fax. Some US Robotics type modems do not send a CNG tone when they transmit a fax, if your fax modem requires that tone to receive a fax, it will think the other side is a voice call and hang up.