Printer failing

When you reinstalled the printer did it prompt you whether or not you wanted to replace the driver and if so did you?
Is the user attempting to print one of the Windows XP SP3 systems? Is this a relatively new problem (tried system restore)? Since the properties option isn't working properly, I take it that means that you can't try a test page. Does a Notepad job crash?.
If no other systems have a problem accessing the property pages, then the issue must be on the local machine, but it sounds like some kind of corruption in the print spooler. You could try the standard fix of Stop Print Spooler service, navigate to Windows\system32\spool\PRINTERS and delete any files you still see there (remnants of print jobs gone bad - if the spooler is stopped there shoud be nothing there) and then restart the print spooler service.
If that doesn't work, system restore or try either or both of these:
http://support.microsoft.com/kb/2000007 (additional info at http://blogs.technet.com/b/fixit4me/archive/2009/05/27/fix-print-spooler.aspx)
http://support.microsoft.com/gp/printing_problems?entrypoint=WHHT

Since it is pulling the driver from the shared printer it does not request any installation of a driver. I have tried stopping the spooler and clearing the contents of the spool directory but there has not been anything listed. The user has 6 other IP printers, this is the only one shared and I was hoping to avoid deleting all printers and contents of the spool folder but it looks like that may be my next step.

This is the only pc experiencing the issue and I have not tried from notepad only Word/Excel and test page (which obviously doesnt work since I cannot open the properties page.)

I did look at system restore but their are only system check points and nothing is changed when reverting to a day or 2 days ago. The issue just started today.

Thanks for the suggestions. It will be tomorrow before I can work on this issue again so I will post the results.

You could look at this: http://support.microsoft.com/kb/924078. I believe that the hotfix won't apply given that you are on SP3, but the process of removing the driver from the local computer's print server may help (assuming it's not a standard bundled driver already, I suppose).
Does the local user have full admin rights to the local machine? Any user permission changes recently? If you log on as a different user, say the local adminstrator, does it make a difference?

I have logged in as administrator and the user has local admin rights with the same issue. The user is too busy for me to address today so I am currently on hold with them. Thanks again for the input. As soon as I get back to the issue I will publish findings and hopefully the resolution.

Remember XP has a limit of 10 concurrent connections, after that strange things happen....

I suspect that the issue will not persist with a new printer. I would personally like to know if removing and reinstalling the driver per the KB article had any impact or for that matter if the proposed Microsoft Fix It resources (from my first response) resolved the issue. I don't expect that the 10 connection default workstation limitation applies in this case as suggested by David because a) this has worked before without problem and b) if you computer is joined to an AD domain or (I believe) even to an Netware network, those limitations go away as it becomes a shared network resource and connectivity is overseen by AD or DS - so the peer-to-peer default rules no longer apply.
I understand if you decide it's not worth your time to pursue the solution, but since you did ask for assistance through EE and a best attempt was made to provide it, I would appreciate award of at least partial credit for "best efforts." If you decied to follow up with the proposed untried solutions and invalidate them, I am fine with not recieving any credit whatsoever. At least then I gain the knowledge that none of those steps resolved the problem and that helps with my own internal "knowledge base."
Cheers, and good luck.