Click on Start Menu, Settings, Network and Dial-up Connections.
Click on Add New Connection.

Next.

Select Accept incoming connections e press next.

Select your incoming modem and make sure you have a direct phone line with data transfer capabilities conected.

Select Do not allow virtual private connections.

Add a new authenticated user for incomeing connections.

Fill in the form.

Next.

Uncheck all unnecessary components, such as NWLink, Sharing,... Make sure that TCP/IP protocol is checked and click on TCP/IP properties.

Configure it as shown in the picture.

Finish.
