I don't know what's wrong with the Palm V dialer software, my ex-coworker Tim claims it works for him. I changed my configuration, instead of "Serial to Modem", I used "Serial to Computer", with flow control on and a port speed of 19,200, then put the init and dial commands in a connect script:
Send: AT&FX4
SendCR
Send: ATDT#777
SendCR
End
Done.
Now to get SASL and Sendmail to do authentimicated SMTP again. (Palm Eudora still doesn't support XTND XMIT over the POP port...)