According to Microsoft's site, there is only a problem with WinME and AOL when using WDM(Windows driver model) modems. I think this means windows-only modems, but I could be wrong. That would explain why people don't have probs with cable modems or 28.8 modems, or any hardware-based modem for that matter. The solutions seems to be a new Ccport.sys file dated 8/23 that you can only get thru Microsoft(that haven't regressively tested it yet). Unfortunately, you have to call tech support or email them and be charged for the support, I think you get two free support calls with a new OS purchase but you have to register it first. Does anyone have this file? I don't like to register!