win2K and dial up networking

I upgraded from Me to Win2Kpro. There is a problem with Dial up networking. The modem is on the HCL, and the Win2K driver is in use. My problem:The modem is installed with no conflicts. Using COM1.
The Fax service will not start as it reports no device present. (Filling up the app log?)

Device manager shows:

Ports: Communications port (COM1)
Modem: Actiontec V90 (COM1)

 In Dial up networking Properties for : ?Connect using: Modem- Unavailable device (COM1)?

Any advice youmay have would be appreciated.

Thanks,