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Before buying another modem, try this old trick.
Go into Device Manager and remove the modem. Shut the computer down. Open the case and move the modem to an empty PCI slot.
Reboot and let Windows reinstall the modem and see if it works.
Post back with the results.
Note: If you don't have an empty slot, don't just start swapping cards around because you'll just get into bigger problems. Just quit right there, reboot, let Windows reinstall the modem and post back here.
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