Fax Software

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10.04 update does not solve any issues related to sending or receiving faxes. It only allows you to setup Fax Sharing under XP SP2/SP3.

Terminal number I would assume is a term they are using to describe your CSID (caller station identifier). Usually this is set as your fax number or name. In WinFax, the CSID can be changed / added under Program Setup, User. This setting however has nothing to do with receiving distorted faxes.

Receiving distorted faxes can be the result of several different problems, from telephone line quality, fax modem drivers, Windows setup of the fax modem, to fax modem settings in WinFax.

What type of fax modem are you using? Is it internal or external? What model is it?
Are you using standard telephone line to send and receive faxes? or do you use VoIP ?
Do you have DSL high speed fax service? If so, you may need a filter added between the fax modem and telephone line connection.