Well the way you deploy the printers seems a little long winded, there are better ways to do it. Lots more info here - Google
what printers are they? Doesnt happen to be a HP 2600 does it?
I've noticed that when attempting to install printers from network shares I frequently run into problems which lead to having to continuously restart the Print Spooler service until I finally get the printer installed. Also, when copying from one Win7 profile to another the printers installed on the profile I'm copying from tend to corrupt once the profile is copied causing me to have to recreate them from scratch. Why is this some much more problematic than it was in XP and, more importantly, does anybody have any tips to improve the situation?
I get the same problem, however the Printing Spooler doesnt even start, no matter how many times you start or restart it the service just turns off.
The only way around i have found is just to rebuild the PC and install the printer again.
To the OP, you have old drivers that are not fully compatible with Windows 7, update them on your server to the latest versions and it should resolve the problem.
To the HP haters, have you tried the UPD if it is an option for your printers, it works great for me under four different networks of both x64 and 32 deployed by script or GP.
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