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If you have Windows XP or better and you can plug your computer into a phone line, you can send and receive faxes. You'll pay only for for the phone call. Here's how:

To Install the built in Windows XP fax software component use the "Start" menu, then select "Control Panel", then "Add or Remove Programs", then "Add/Remove Windows Components" to get to this screen:

Install Windows XP image.

Check the "Fax Services" box and then click "Next" to run the Wizard. When finished you should see the following screen under "Printers and Faxes" under the "Start" menu. You'll find the "Fax Console" under the "Start" menu listed under "Accessories" under "Communications". Or you can simply select "Fax" as your printer when you use the print menu. Read the Microsoft help files at the links listed below for more help.

fax configuration panel image

If you need additional help with Windows XP Fax Service, here are links to Microsoft's knowledge base articles:

Enable and configure the Fax service: support.microsoft.com/kb/306550/
Send a fax in Windows XP: support.microsoft.com/kb/306657/
Fax a document from a Windows program: support.microsoft.com/kb/306661/
Receive a fax in Windows XP: support.microsoft.com/kb/306662/
Fax a scanned document in Windows XP: support.microsoft.com/kb/306663/

You can't beat the price! But this solution requires you to tie up your phone line to send or receive faxes. Take a look at our reviews of Fax Services if you want the convenience of a dedicated fax line without the need to add a second phone line.