Problems with dial2net and dhcp on sorcerer

I have just donloaded and attempted to install sorcerer linux. I have
configured it to dial to an isp using a modem on ttyS0.

I also have a network card in the machine that uses dhcp to get a
network address.

Before configuring networking I issue the command dial2net -c and the
modem dials the isp. The modem send and recieve lights show that I can
send and recieve data over the internet and can access files ok.

Now I go into /etc/init.d and edit networking.sh. I change the file to
read :

--- BEGIN file contents ---
DEVICE=eth0
IP=
BROADCAST=
NETMASK=
GATEWAY=
MODULE=

case $1 in
start) echo "$1ing networking
# modprobe $MODULE
# ifconfig $DEVICE $IP broadcast $BROADCAST netmask $NETMASK
# route add default gateway $GATEWAY
rm -f /etc/dhcpcd/dhcpcd-$DEVICE.pid
dhcpd $DEVICE
;;

stop) echo "$1ing networking."
ifconfig $DEVICE down
# modprobe -r $MODULE
;;

restart) $0 stop &&
$0 start
--- END File contents ---

When I issue the command "/etc/init.d/networking.sh start" the network
starts and I can ping other clients on the network.

The only problem now is that when I issue the comand "dial2net -c" The
modem connects and dials to my ISP, but the send and recieve lights
are dead and the modem won't send or recieve any data.

If i stop the network, comment out the "dhcpd $DEVICE" line and the
"ifconfig $DEVICE down" line on the networking.sh file and reboot,
then "dial2net -c" works as expected again.

I think I need to configure something else somewhere, but both the
sorcerer and dial2net documentation is largely non-existant so I have
no idea what to do. Can anyone provide me with some help here ?

FYI:- I am usig the 3COM 3C900 series drivers compiled directly into
the kernel. ppp is also compiled into the kernel. The ISPs I've tried
are ntlworld and tiscali. The modem used is a 3COM US Robotics 56K
external fax modem.

Thanks in advance.