You do need to upgrade the schema to R2 (31) in order to deploy printers via GPO, so really this means that you need to have an R2 server running as a DC, as you need to use the Print Management console on an R2 DC.
Deploying printers via GPO is something that has been added to AD in R2, therefore AD needs to be upgraded to R2 to allow this.
The link provided by awinish explains this.
Tony





by: AwinishPosted on 2009-11-05 at 03:11:43ID: 25748307
For member server you don't require schema to be updated.
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networking .com/artic les_tutori als/ Deploy ing-Printe rs-Group-P olicy-Wind ows-R2.htm l
Schema has only to be updated when you have DC in windows 2003 & want to introduce ADC of windows 2003 R2.
the Active Directory Schema commutability:
win2k - 13
win2k3 - 30
win2k3 R2 - 31
win2K8 - 44
win2K8 R2 - 47
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Go thorough below link with GUI for deploying printer.
http://www.windows