I see I had the same problem with you.  No idea what caused
the problem, but the characters from you were coming through
garbled.  I tried dialling out, and I had the SAME PROBLEM
of garbled characters!!!  I did an AT&F1 and then put the 
S34=128 again.  God only knows what the modem was up to.
I tried going through all the different baud rates too!
Seems to work now (at least for outgoing).  BFN.  Paul.
@EOT:

---