Have you tried tweaking a few of the settings in dial-up properties?

You may want to compare a working and non-working laptop and see what settings are different.

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yep we have tried that too and everything is exactly the same.

Could it be that on some machines an update was installed that caused problems and not others? Try Start > Run > winver and see if the version numbers are different.

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Nope they are the exact same versions.

Well I am completely stumped. The only solution I can think of right now as of reformatting is removing the dial-up connection and setting it up again, copying the exact same configuration from a working laptop.

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yah we have tried that too an uninstalling the modem too and that doesn't work so i don't know for sure what it is.
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yah we have tried that too and tried uninstalling the modem and nothing seems to work.