Sysedit, is no longer available in ME for some reason? to run it in 95/98 .. start/run type sysedit and you get the screen for all your system files (Including autoexec.bat) Delete all instances, in each file relating to your fax package.

Also, what Modem do you use? Is it a US Robotics Winmodem? (There is a fix for that in the Microsoft KB) Or, if it is another modem, there is also another fix too? Tell us the modem Make/Type and I'll give you some strings you can try as a workaround?