Our Help Desk support staff was really perplexed. They were getting hammered by phone calls whenever a print driver was updated and the Windows 7 clients attempted to upgrade the print driver. Windows XP clients had no problems upgrading, so obviously there was a UAC issue.
After doing some research a new setting was discovered that by default was set to require elevated permissions to install a new or upgraded print driver. To allow users to update or install a new driver there are two new gpo settings that need to be configured for your users.
Both reside at the following location:
Computer Configuration / Policies / Administratice Templates / Printers
When installing drivers for a new Connection: "Do not show warning or elevation prompt"
When updating drivers for an existing connection: "Do not show warning or elevation prompt"
By setting both vales as defined above, users will now be able to connect and update their workstations without a Help Desk support visit.