yes you can fax, need a land line and modem.
if you recently upgraded to winxp (way overdue, considering you should have updated to win7)
you probably missing drivers for your modem, you can find them on the drivers cd that came with your machine
This problem appears to occur because the security data base is
corrupted as documented here:http://support.microsoft.com/kb/884018/EN-US/
AntiZig.....thank you ....I reloaded the driver disk .....same thing....I can get to the Fax Wizard....when I press next I get the message info cannot be retrieved......I have xp sp3....they claim because of the automatic update the security data base is corrupted.....I'am trying a hotfix ....if that doesn't work....the next automatic update might.....I get a ton of security automatic updates from windows xp