I tried this out and it seems as though the same exact driver that is being used on the Win7 client needs to be installed on the remote XP computer. I'm testing with an HP Laserjet printer. I installed the printer on the Win7 client using the driver included with Windows 7. It did not show up on the remote XP machine.

I installed the same printer on the XP machine using a PCL6 driver downloaded from HP to make sure the driver was installed. The Win7 printer didn't appear after connecting via RDP. The reason is displayed in the System log in Event Viewer:


"Driver HP LaserJet P3005 PCL6 required for printer HP LaserJet P3005 PCL6 is unknown. Contact the administrator to install the driver before you log in again."

I then installed another instance of the printer on the Win7 machine using the driver I downloaded for XP. The driver worked on Win7 and the printer appeared on the XP machine after connecting to it via RDP.

I also tried installing the HP Universal Print Driver on both machines. This also worked.

There's a new policy available in Win7/2008 and Win2003 SP1 called "Specify terminal server fallback printer driver behavior". This seems to fix the problem but isn't available for XP.

Another thing to try is described here:
http://support.microsoft.com/kb/302361

Hope this helps,
Andy

Alexander Patterson wrote:
Hello

Anyone have a fix on why IP printing with Windows 7 RDP is not working
correctly.

Is there a way to have the IP printer drives that are installed on a Windows
7 machines that are connecting to a XP Vmware Image will be able to pull the
drivers and be able to use IP printing with RDP?

The local printer drivers work in Windows 7, but IP printers are not showing
up in our XP images. When the user is connecting from a Windows 7 machine.

Anyone else having these issues?

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