Using XP fax you can't share the line with an answering machine
because only one will pick up the call, depending on number of rings
set on each. If, for example, the number of rings set on XP Fax is
less than that on the answering machine, then XP fax will take the
call and if it is a voice call the caller gets a fax scream and you
miss it.
To do what you want to do, I think you need to have a Voice/Fax modem
and third party software that will perform both fax and answering
machine functions.
There may well be other options for you.
Re whether computer needs to be on - if you have the modem wakeup
function set in your bios then the computer will switch on
automatically if there is a phone call. However if your computer
takes a long time to boot and start the fax software the call may be
missed. If the computer requires login/password it also may not take
the call.
John Allen