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Outdated Drivers Can cause hardware related Errors. Check your PC Drivers now.

Error 698

1.  Make sure the modem is using correct drivers for the computer's operating system (most likely NT).  Try reinstalling the modem.

2.  Make sure that the files PAD.INF, MODEM.INF, and SWITCH.INF in C:\SYSTEM32\RAS are not marked as read-only and the currently logged on user does have write permissions.

3.  Reinstall RAS/DUN.