I checked in Ubuntu 10.04 and 10.10:
Preferences > Default Printer has been removed and system-config-printer now
asks if you right-click "Set as default" on a printer if you want to set it as
the system-wide or user default printer. The first printer that is added
automatically becomes the system-wide default (green check mark icon).
gedit's File > Print selects the user default printer if available and
otherwise the system wide default printer.
So I think this solves your problem, therefore closing as Fix Released.
Feel free to reopen if you still see a problem.
** Changed in: system-config-printer (Ubuntu)
Status: Confirmed => Fix Released
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Preferences -> Default Printer is useless
https://bugs.launchpad.net/bugs/196538
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