Seems to be an Avahi bug, moving to the avahi package ...
** Package changed: system-config-printer (Ubuntu) => avahi (Ubuntu)
** Changed in: avahi (Ubuntu)
Importance: Undecided => High
** Changed in: avahi (Ubuntu)
Milestone: None => ubuntu-12.04.1
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https://bugs.launchpad.net/bugs/987212
Title:
Wireless printer "Processing - Unable to locate printer."
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