According to openprinting.org the recommended driver for the HP DeskJet 540C is
the hpijs driver.
So this is not a bug in foomatic-db or system-config-printer but probably a
regression of the newer hplip in hardy.
Is your printer able to hold both a color an black cartridge at the same time?
The 540 model can hold only one ink cartridge (black or color) and the 540C can
hold both at the same time.
** Changed in: system-config-printer (Ubuntu)
Status: New => Invalid
** Also affects: hplip (Ubuntu)
Importance: Undecided
Status: New
** Changed in: hplip (Ubuntu)
Status: New => Incomplete
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Printer Configuration Recommends Bad Driver for HP 540C Printer
https://bugs.launchpad.net/bugs/224000
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