Well, just for kicks, I tried msfax. I got it installed and was able to add it as a service and saw it 'try' to send but then it just errored. She had Office XP! There's no workaround to get it to work with Outlook 2002. Aw well - worth a shot.
They'd really like some type of free software solution to share the modem for faxing (yet not remove it from the computer it's currently on). However, they do have another issue in that they'd also like to share that one modem for dialing out (not internet). For something like that they'd be willing to pay a little and that solution should resolve both probs. I'm still looking around because I could have sworn I saw some freeware port mapping/virtual com port software somewhere.