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A loop current problem indicates that the phone line is not connected to your fax correctly, the cord is broken or where you have plugged into the wall is dead
i had same problem trying to receive faxes until i changed phone connections.
according to a motorola manual (link below) this has something to do with being connected to a "proper analog phone line".
i had the phone line running from wall to a newer gateway (maybe 8 months) dec 07 to a maybe 2 year old compaq. kept getting that loop current error on the compaq when trying to receive a fax until i elimated the gateway connection and plugged the wall right into the compaq.
here's a link that might help: http://downloadmirror.intel.com/12655/ENG/Motorola.htm
see section 6, troubleshooting. hope this helps...
Its the phone line causing the problem. Check the line via the handset, if you hear static sounds you have a bad line. Contact your phone provider and have it checked/fixed.
Also check the feeding of your original by using the copy function. It is possible that you have a feeding issue but I would bet on it being the line.
Check the line cable. Try inserting that line to another telephone unit. And if there's still no dial tone the problem is on the line itself. You should call your line provider.
But if the line is ok, check the LIU connectors if it is inserted correctly. It the connectors are ok, then the possible problem is on the tel. line circuit on its mainboard.
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