This is an error caused using your USB modem or when you use your handset as a modem. In this case the telephony service is disabled on your computer. When this error occurs you will not be able to create a dialup connection on your computer. You will find that the dialup option in the wizard is grayed out. If your using a software to connect and if you hit the "connect" button it will throw an error message "could not connect to the remote computer check network settings". To get this resolved the telephony service on your computer should be change to manual or automatic (startup type) and the status should be changed to “started”. To make these changes click start and go to control panel switch to classic view (on the left of the screen there is an option which says “switch to classic” view on XP “classic view” on Vista) open administrative tools and you will find “services”. Open services and you will see a list of options where everything is in alphabetical order. Go to telephony and make sure that the status is showing as started and the startup type is showing as automatic or manual. If not double click on it from the dropdown change it from disable to manual and click “start”. If it is already showing as manual or automatic but there is an option to click start click start. Close all windows and restart your computer. You are now ready to connect to the internet using your 3g USB modem / wireless USB modem or your handset as a modem.