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check the maximum transmission speed in the modem properties (in WinFax) it should be set to 14,400 or As Fast As Possible.

It is set to As Fast As Possible. But I still get the warning that no Active modem is selected!

Check your Send / Receive limits count using WinFax Tools. If your receive log is over 50% capacity it could cause receive problems. Check under Logs & Phonebooks, Check Send/Rec Limits button. What does it report here?

Your default send log folder is 5% full.
Your default receive log folder is 2% full.

Received Fax (*.FXR files) slots available (Maximum of 10,000) : 9731
Send Fax slots (.FXD Files) available (Maximum of 10,000) : 9422

Cover Page Text files (*.CVR files) total count is : 435