Hmm.... I had to check up on Karoo as I'm in Scotland.
I think I'm safe to assume it's ADSL broadband, the same as I use.
It is also safe for me to assume the PC crashes have nothing to do with your windows setup. But I would check to make sure you have all the latest updates installed (particularly if its windows XP.) Don't worry about that just now though as that can be done later.
Unplug the modem and I reckon the system will function again. At the 'black and white' screen (windows startup) prompt tell it to 'start windows normally'.
If it does, it sounds to me like you have one of the following problems:
1. a faulty USB socket on your PC - maybe try a different socket.
2. a faulty USB lead - check for any cuts or bad kinks in the cable - replace if neccessary.
3. a faulty USB modem - it's all too common with usb modems. -
I recommend what I did and get yourself a decent ADSL ethernet router/modem. A good brand is Netgear and they are not that expensive - check out www.ebuyer.co.uk (or ebay) and search for DG834G. dead easy to set up! keyword is 'ADSL'.
There are cheaper brands granted but I can't guarantee the ease of setup with them.
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USB modems use up resources such as power consumption, processor time and memory usage from the motherboard of the computer. If the usb modem malfunctions there is a strong probability it will make the system unstable.
Ethernet modems do all the work for you. All you do is make a network connection to it and no sweat from the PC.
I can go on all night but got personal stuff to sort out. Hope it helps. :)