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"Connect using a Dial-up Modem" is greyed out and unselectable in WindowsXP's New Connection Wizard

Occasionally, when running Windows XP's "New Connection Wizard", you'll get to the step labeled "Internet Connection - How do you want to connect to the internet?", and find that the option you need, "Connect using a dial-up modem", is greyed out, and unselectable.

The first thing to always try, is to have the user click "Exit", and then immediately start the New Connection Wizard again afterwards. This will sometimes do the trick.

However, in some cases, the above doesn't work. In these instances, follow the steps below:

  1. Type regedit in the window and click OK. This will open up the Registry Editor
  2. In the registry editor window, click on the '+' sign next to HKey_Local_Machine.
  3. Click on the '+' sign next to System.
  4. Click on the '+' sign next to CurrentControlSet
  5. Click on the '+' sign next to Services
  6. Click on the '+' sign next to RasMan
  7. Click on the '+' sign next to PPP
  8. Click on the '+' sign next to EAP
  9. Delete 25 and 26 folders
  10. Close the Registry Editor, and restart the computer.

If all else fails, please refer to the following MS Knowledge Base article:

http://support.microsoft.com/default.aspx?scid=kb;en-us;320558