As a test, can you replce the ATZ with a full init command (I use AT&FE0V1&C1&D2S95=47S0=0M0 with my modem) ?
By the way, the following is copied from /usr/doc/mgetty/README.debian " High Baud Rates --------------- Linux supports 115200 and 57600 Baud, so does mgetty. But some to ols (notably rlogin and telnet) crash with a segfault at those high baudrates. If you want users to use regular shell dialin then please leave t he highest baudrate at 38400. You can then use the "setserial" program to make the serial port drivers do 57600 or 115200 Baud. Note that a serial port must run at 115200 Baud in order to use the full speed of a 28.800 Baud modem with compression. A serial port should run at 57600 for a 14.400 Baud modem. " -- TO UNSUBSCRIBE FROM THIS MAILING LIST: e-mail the word "unsubscribe" to [EMAIL PROTECTED] . Trouble? e-mail to [EMAIL PROTECTED] .