DSR is low while initializing the modem

[Firon]

We have a Windows 2003 Standard server with Terminal Services setup. The client PC having modem installed locally on their PC but when i setup a dial up connection the blue dial up box does not appear. It says "DSR is low while initializing the modem. Verify modem is turned on." What does that mean modem indicating that power is on. What has happened and what is the solution?Can anyone help!!

[Rawko]

Programs that control telephone systems through a serial interface (COM port) may not work when using Terminal Services. Even though you can redirect a COM port to the client in the user session, a Telephony Application Programming Interface (TAPI) Telephone Service Provider (TSP) cannot access the COM port.

[Hamir]

Did you tyr another fax software? Data Communication and Terminal Equipment like computer which receive signal or send signal need to be able to "handshake". If your motherboard BIOS has a setting for "Modem uses IRQ" set it to N/A Microsoft recommends setting the BIOS setting for "OS is Plug and Play " to disable; when using "Windows XP"; XP likes to set up the hardware itself.

[RoninBlade]

To Check your modem is working correctly:
Go to Start, Control Panel, Phone and Modem Options, Modems tab, highlight your driver and click the properties button. Then click on the Diagnostics tab and click the Query modem button, if there is no problem with your modem then it will display some information under the Command and Response section. if no then the pop will occur with eror message.

Check this thread with same problem :
No dial tone when faxing