Fax Software

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Have you tried using Windows XP’s Fax Service to see if faxes can be rexeived with that? This will rule out a WinFax specific problem.

Also, If you have access to another (different) modem I’d try that. I usually don’t recommend USB type fax modems unless you have some limitation on your PC that prevents you from using another type of fax modem (such as an internal, or external serial based modem)