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PuppyMenu > Setup > Internet Connection Wizard
Then click on 'Internet by dial up...' in the 'Connect to' section.
Note: autodetection and auto-setup of some modems is a work-in-progress, and there is some on-going discussion on this topic in the Puppy forum.
To dialup, all you have to do is click the 'connect' icon on the desktop. This will bring up the "Internet Connection Wizard" in which you will see a a button labelled "Internet by dialup analog or wireless modem" -- just click that and you're in business -- a program I developed called PupDial runs, and it will tell you whether or not your modem is detected.
Note, in the Internet Connection Wizard you will see some radio-buttons at the bottom. These enable you to configure the desktop 'connect' icon to immediately launch PupDial, not the Wizard -- one less click to get online!
One thing though, although Puppy can autodetect many modems and automatically set things up so that the modem is ready to go, in some cases you may have to do some extra tweaking. For example, Puppy detects your modem, but it won't dialout -- you do some research and find that the modem "initialisation string" needs to be changed, then it works. Whatever, if you do tweak a soft-modem and get it going, please please let me know about it and I can build those tweaks into the next release of Puppy.
Example: some soft modems need the "dialtone check" in PupDial to be turned off.