I have a new Windows 7 PC connected via USB to an HP LaserJet 1320. This printer is shared on a peer-to-peer network, printer sharing is turned on, password protection required is turned off, and encryption is set to 40bit (not 128bit). On the network is a MacBook running Mac OS X 10.6.4. On the Mac, I went to add printer, Windows printer, located the printer on the network and associated the driver and printing worked fine.
A day or two later, the user reported that the printer stopped working. Now, whenever a job is sent to the printer, the printer queue on the Mac reports "On Hold (Authentication Required)". Pressing Resume and selecting either the Mac user or the guest account has no effect (recall that the Windows 7 PC should not be expecting a password at all as password protected sharing is turned off).
Expecting to find some Mac printer driver wonkiness, I went to System Settings and "Printer and Fax". I tried to re-add the same printer, only to find that when I go to add a printer, the entire "Windows" section is grayed out. I cannot add any Windows printers.
I look forward to any suggestions on how correct this printer issue.