The connection attempt failed because the modem (or other connecting device) on the remote computer is out of order.
This error cannot occur with Windows 95/98 or NT - only with Windows Me or 2K.
This error can occur if you have installed your modem with an incorrect driver.
Identify your modem chipset, PCI ID, manufacturer, and make sure you are using the correct driver.
The modem or DUN (dial-up networking) may not be installed or set-up properly.
Try using Hyperterminal - if you can, inspect/re-install DUN; if you cannot, the modem needs to be re-installed.
Many PCI modems include an entry in Windows' Add/Remove Programs (from Control Panel or System): it is important to remove any installed modems using this remove function to properly update the registry.
In some cases where the modem has been installed more than once with different driver versions without proper removal, the registry may be corrupted: if this is the case, only manual editing, restore from backup, or re-installation of Windows may cure the trouble.
Also note: In many cases, PCI modems will not operate in all of your PCI slots.