Init refers to the 'run-level' that the linux system is running in.
On many distributions, init-1 is single user mode. init-2,3,4,5 are multi-user run-levels, with init 4 & 5 being the level where the X graphical environment usually runs.
init 0 or 6 are for shutting down/rebooting the system.
To change runlevels, enter root console and type 'telinit 3' or whatever level you want to switch to.
As for the 'SetVolume' thingy, I am not sure. I would guess that the idea with 'SetVolume' is intended to apply a 0 value to the volume, and if it's used in a modem configuration file, then yes, it probably intends to set the speaker volume to zero. Whether that gets translated into something the modem understands is another question. As for wvdial specifics, you'd have to do a bit of research on your own there, as I don't actually use wvdial. I have however used lots of modems, and generally all modems use the 'Hayes Command Set' or some variation of it. Google 'Hayes Commands' for more info on that.