Here are some possible causes and resolutions:
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This error message can occur if the modem is using a new serial port assignment due to new devices installed by Windows 98 hardware detection.
Check that the modem is plugged in, andif necessary, turn the modem off, and then turn it back on. Change the properties of the Dial-Up Networking connection to use the new modem settings. Programs in the StartUp folder can also cause this error message. Disable those programs one at a time to test this.
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This error may indicate the modem is damaged, not connected, or installed improperly. If you have an external modem, make sure the cable is connected, and the modem is powered on. If there have been electrical disturbances (including thunderstorms or power failure/surges) since the last time the modem worked, that may be the cause. If the modem has never worked, double-check installation, and if possible, try the modem in another system.
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This error may also occur if your modem is being given a bad init string - with a command that it does not support. Remove any extra settings/init string. Make sure the modem is installed with and using the correct .inf file - examine modemlog to see if there is any modem response.
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Windows 95/98/NT - This error may occur if you have special telephone company provided features - like distinctive dial tone - including dial tone stuttering signaling voice-mail services, etc. Several methods can be used to fix this including the use of commas in the dialed number, or changing the wait for dial-tone time.
See Microsoft KB Article Q184086 titled, "Phone Company Services May Disrupt Modem Functionality"
http://support.microsoft.com/directory/article.asp?ID=KB;EN-US;Q184086&
(REMOVE SPACES from the pasted URL.)
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