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Terminal Server user cannot add a printer?

I have a new terminal server set up on a Windows 2003 machine.  I had users that could not add shared printers from the domain but I fixed that by changed the local policy on the terminal server to allow it.
We have 3 subnets with a print server in each subnet.
Users can now add printers from 2 of the 3 but the third throws this error:

a policy is in effect on your computer which prevents you from connecting to the print queue

This is from the print server which is a Server 2000 machine.  It affects both terminal users in that subnet as well as users from the other subnets.

What can I change to fix this?

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I forgot to say also that the windows 2000 server is also a domain controller as are the other 2 print servers which are 2003 server OS.
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Mikael Jansson
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I had not installed any printers on the TS.
Users are able to install from 2 of the print servers but the 2000 box.
As a test I installed a printer from the 2000 server under the admin profile on the TS server.
I was then able to add this printer using the add printers tool using a test user.
I will have to check with the real user tomorrow to see if he can add the printer.

Is this the correct way to do this?
It should be the correct way and if the driver exists on the TS thats not the problem.
Do you see any events in eventviewer related to problems to Group policys, e.g. with source Userenv. It sounds like the GPO is maybe not updated on the computer where it doesnt work.
Are you publishing the printers through GPO?
/ Mikael
I logged in as admin then added the network printer then logged out. Now the user who had the problem can add that network printer, presumably because I installed the driver when I added it??