i've tried to set up fax in XP home edition, followed these instructions:
Fax is not installed by default during Windows Setup. To install the Fax component: Open Add or Remove Programs in Control Panel. Click Add/Remove Windows Components. In the Windows Components Wizard, select the Fax Services check box, and then follow the instructions on your screen.
Put in CD, hit next but nothing happens, it says copy file from: F:\i386, but nothings happening.
i had exactly the same problem last week with windows xp,what i did was to copy i386 from the disc into say d:drive then copy it back into c:drive then went back into add/remove programs windows then found it.All ok now after it also cost me a new modem i know it seems odd but i works