If you read through the printer manual, you should find that initial setup
is proabably done WITH THE PC CONNECTED TO THE PRINTER.
If the manual has some special way to connect the printer to the network
with a static IP address, it seems evident that you have not set this
correctly in the printer. If it had been set, you should simply use Add a
Network Printer, type in the IP address and XP will find the printer..... of
course it will still ask you for the drivers, so you need to have the CD
available to pop into the optical drive at that time.
Does the router show the printer as having a valid IP address? if all this
is too tecnical for you, the place to start asking question is the
NETWORKING XP newsgroups.forums, not the printing newsgroup, there is
probably nothing wrong with the printer, but there does seem to be a problem
in your ability to network. Are you sure the printer is connected to your
network, and not your next door neighbor's?