It sounds like the modem has connected fine. The stuff after the CONNECT message changes from modem to modem. The stuff after the connect speed indicates the optional feature enabled (In your case ARQ error correction).
You said that you normally get a login prompt from the ISP? Does the dialer have a script that logs you in, or is it trying to go straight into PPP after connecting?
Is the init string suitable for the modem? I think 'AT &F1' was a good one for USR modems (Add M1 is you want the speaker on, or M0 to turn it off).
Sorry I can't help more, but I haven't used a dial modem in a few years since cable and DSL arrived in my area. In the past I have had good luck with USR, GVC and Motorola modems on A500, A1200 and A3000 systems as well as PCs.
