George
My IT guy set me up with ZIMBRA- I think it is open source so it should be free.I do not pay for it. The faxes come in via email. There are other applications you can buy from them.
If you have a fax machine you should be able to receive and send faxes through a PC with the fax software that comes with it- What Fax machine do you have?
Here is the link for Zimbra-
http://www.zimbra.com/learn/Grenville