Fax should work fine over E1 R2. I am assuming that you have an analog port and an E1 R2 port on 1760? If so, I am assuming that you are dialing the exact same digits and matching the same outbound VoIP dial-peer. Can you confirm this for an analog call and an E1 R2 call using "show call active voice brief" and confirm that the VoIP pids (peers ids) are the same.
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