Creating Dial-up Connection within a Terminal Server Session.

Hi,
We have a Windows 2003 Standard server with Terminal Services
setup. We have a client PC that has a modem installed locally on the
PC. We have allowed redirection of com ports so when the client
connects to Terminal Server, the com ports get redirected. We can
install a modem okay, do a diagnostics okay on the modem. The problem
is when we setup a dial up connection for their banking software or to
dial anything, we get an Error 692: There was a hardware failure in the
modem. (or the other connnecting device.)
This is the errors in the modem log.

DSR is low while initializing the modem. Verify modem is turned on.
06-03-2006 17:05:14.896 - CTS is low while initializing modem.
06-03-2006 17:05:14.912 - Send: ATE1V1Q0<cr>
06-03-2006 17:05:14.927 - TSP(0000): Making Call
06-03-2006 17:05:16.911 - Timed out waiting for response from modem
06-03-2006 17:05:16.911 - The modem failed to respond to the
initialization command, Retrying one more time
06-03-2006 17:05:16.911 - 115200,8,N,1, ctsfl=1, rtsctl=2
06-03-2006 17:05:16.911 - DSR is low while initializing the modem.
Verify modem is turned on.
06-03-2006 17:05:16.911 - CTS is low while initializing modem.
06-03-2006 17:05:16.911 - Failed to send command because of WriteFile()
Failure, Error=000003e3


We have tried two modems so far, can't do any good.
But if we connect via HyperTerminal using straight com port not via
the modem, I can do a atdo command and dial out. In Hyper Terminal if I
choose the modem, I can't dial out.
Has Microsoft done this on purpose to stop any major conflicts by
clients creating dialup connections to their own modems, or is the
serial port redirection of the RDP Desktop only intended for serial
printers?

Any suggestions would be greatly appreciated?

Thanks in advance,
Jim

.

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