Hi Laddyboy,
The only thing I can suggest is to disable your modem completely (I had to the first time round, as it was being used when I installed LiveWare3 for some reason). I don't think either LiveWare 2.0 or 2.1 works on win2k from what other ppl have said. Also, have you managed to get the NT4 drivers working at all before the LiveWare3 installation? I had great difficulty until I disabled PCI Steering - then it worked.
Hope you have some success soon.
Phil