I don't have the problem anymore in Lucid. The icon now goes away after
printing is complete. Feel free to reopen if you can reproduce it.
** Changed in: system-config-printer (Ubuntu)
Status: Incomplete => Fix Released
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system-config-printer-applet doesn't hide automatically when printing is
complete, and Hide menu option doesn't work
https://bugs.launchpad.net/bugs/373208
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