SBS 2003 Outoging Fax Problem w/Error 32028 (Cannot send - fatal error)

I’m facing some problems with the Fax system in SBS 2003. I can say that Fax Module is indeed very good but due to some reason, outgoing fax is not working on this box. No problem with incoming faxes. When we try sending any fax, we can see that fax job appears in outbox, model also starts dialing and starts negotiating when recipient's fax machine answers. After this we hear pitch noise for about 3 seconds and Modem goes silent. And in status we see “Fatal Error”.

When I check Event Viewer Log, this is what I found:

Event Type: Warning
Event Source: Microsoft Fax
Event Category: Outbound
Event ID: 32028
Date: 5/11/2007
Time: 6:46:20 PM
User: N/A
Computer: SERVER01

Description: An error was encountered while sending a fax. The service will attempt to resend the fax. If further transmissions fail, please verify that the phone line, fax sending device, and fax receiving device are working properly. Sender: . Billing code: . Sender company: My Company. Sender dept: . Device name: AOpen FM56-EXV. Job ID:
0x0201c7941e1bc0d3. User name: MyCompany\administrator. Please check the activity log for further details of this event.

Please help.

The very first thing I would like to know is what speed you have set your Modem? Also give some more info about the modem. Meanwhile, just try out the following steps and see if it works for you:

• Reduce the baud rate of the incoming fax modem.
• Try turning off compression.
• Select the modem Control Panel , click Properties. Click Update
• Driver on the Driver tab, use the Microsoft Standard 56K Modem driver and see if Fax works.

I appreciate your help friend. As you asked, my Modem is a simple 1 port external AOpen 56k External V.92 and I have set it up at the speed of 38400. I guess the high speed was the problem but lowering it down to 9600 also dint helped. Still getting the same error.

And as you suggested, I even tried turning off compression but no success yet. What else?