Is the modem on the Windows HCL? Have you tried looking for an updated driver. I am reading that installing a Standard Fax Modem Driver fixes alot of fax related issues with Server. I've seen where several people end up uninstalling the manufacturer driver and end up using Windows standard modem driver with no problems. First, uninstall the current driver for the modem via device manager. Next, go to Control Panel and open the Phone and Modem Options. Click the Modems tab and click the Add button. When the Install Modem (Add Hardware Wizard) launches put a check by 'Don't detect my modem; I will select it from a list' and click next. The next page should display a page with a list of standard modem types. Select the standard modem type that corresponds to your modem (probably Standard 56k) and click next. Then just finish out the wizard to finish configuring the modem. See if that will work out for you.
Joey
CCNA, MCP, A+, Network+, Wireless#