We bought a new machine with XP on it and had the same problem. It seems that the fax software wouldnt release the modem so we could use it for a dial-up internet connection. Went through all the diagnostics with Gateway on the phone and they diagnosed it as a defective modem butit turned out all that was needed was to reinstall the modem driver that comes with XP.

The problem comes back, however, but we no longer care because we don't use the modem for the internet anymore.

Bev and Jerry