On my win98 system, the PPP adapter is always present even if the modem hasn't been dialed. I think it's at 0.0.0.0 all the time until I connect to a DHCP sever with it...

Of course, you just said you're using Windows XP. And as I've already stated recently, I think it is a piece of complete and utter crap. Considered using Windows 2000 instead?