This happens if you have an NVIDIA NView setup. You might need to add wfxmod32 , wfxctl32 to your NVIDIA application settings to disable all NView functionality for these programs.
WinFax Tools has many fixes for WinFax that are automated.
http://www.getfaxing.com/cgi-bin/ib315/ikonboard.cgi?act=ST;f=17;t=412
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