When you try to print to a shared printer from a computer that is running Windows 7, the print job fails.
This issue occurs when configure the shared printer for direct print jobs. For example, consider the following scenario. You do not use the default setting for the print job on the client computer. The default setting is to render the print job on the client computer itself. Instead, you use the setting to send the print job directly to the shared printer to allow for rendering the print job on the printer. In this scenario, if the printer driver is based on the Microsoft XML Paper Specification (XPS) or XPSDrv driver, you cannot print directly to the printer.
To work around this issue, you can click to clear the Render print jobs on client computers check box on the Sharing tab of the Printer Properties dialog box for the printer.