Your modem setting probably is not compabile with the data rate your phone will support.
From the user manual --
If you are having difficulty sending or
receiving a fax due to possible interference
on the phone line, we recommend that you
adjust the compatibility setting to reduce the
modem speed for fax operation
Press a or b to choose Basic or
Normal (or High).
Basic cuts the modem speed to
9600 bps. Unless interference is a
recurring problem on your phone
line, you may prefer to use it only
when needed.
Normal sets the modem speed at
14400 bps.
High sets the modem speed at
33600 bps.
Press OK.
Press Stop/Exit.
The other thing to consider is do you have tone or pulse dial service from your telephone company?
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