Source: Microsoft Support
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Symptom
Windows Server 2008 print server may experience higher than normal CPU utilization in the spoolsv.exe process. The spooler.xml file located in %systemroot%\system32\spool\ folder will also grow in size and may exhaust all available disk space.
Cause
If the print spooler (spoolsv.exe) is under stress or the print server is very busy and the spooler enters an error condition, the errors are written to the spooler.xml file. The CPU utilization is caused by the spooler process rapidly writing the errors to the log file and the file will continue to grow until the error condition ceases or the operating system is restarted.
Resolution
You can work around this problem by disabling Windows Error Reporting for the print spooler. To disable WER, perform the following steps:
1. Open the Registry Editor by running regedit.exe.
2. Browse to the following registry key:
HKEY_LOCAL_MACHINE\System\CurrentControlSet\Control\Print\
3. Add a REG_DWORD value named DisableWERLogging and set this value to 0x1 (hexadecimal)
4. Restart the Print Spooler service.
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