Fax and Scan -- Not send fax

Hi

I am setting up a PC with 7 Ultimate, I have got a USB modem and have installed it and set up windows fax and scan. I have been able to receive fine and that's all working but when I try and send a fax if I pick up the phone and listen I can hear it dial the number, then it beeps twice, then comes up on the screen saying the phone line is busy, I've tried dialing in and out on the phone which works and I tried dialing the number I am trying to send the fax to which works, but I just cant make it send the fax.

Any help would be appreciated.

Do you have your dialing rules setup for your location? IE Go to control panel, phone & modem and that will ensure that it does not try to make a long distance call.