I was having a similar problem and did a Google search on it and found the
following:
"I had the same problem. I found a solution. Logically it makes no sense
to me, but it worked so...
Go to Control Panel. Choose printer. Then choose Add Printer.
ChooseAdd a local printer. Click on Create a new port. The default in the
drop down box is Local Port. Do not change that. Click Next.
A dialogue box will appear asking for you to enter a port name. Type in
the \\computer name\printer name ie. My computer's name is basement and
the printer name is EpsonSty so I typed in \\basement\epsonsty
Yahoo! It worked. Go figure! I guess Microsoft thinks printers on a
intranet are local."
Hope it helps.