Since WinFAX died then soon FAX modem will be gone for good. I love WinFAX Pro but it doesn't work with Windows XP I have google search for good cheap FAX program I can't find any. Think about getting standalone FAX machine?
I use XP/2003 built in fax application. It's by no means the greatest, but it works. There are third party apps that do it better, but they can be fairly expensive.
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