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print server for XP and Windows7 clients in 2003 domain (need 2008?)

I have a 2003 domain that have some new Windows 7 computers (64 and 33 bit) that need printers. I looks like I need to put a 2008 printer server in in order to serve out the proper drivers (HP 1320's, 2430's, etc)

Question: Does the 2008 server need to be a domain controller in a 2003 environment to share printers to BOTH XP and Windows7 machines?

In the 2003 environment we have, anybody can add a printer currently from the Server 2003 print server. Will this be the case with a 2008 server or will there be domain policies we need to make in order to let all domain users add a printer?

We tried it once, but it seemed that the users got stopped while installing printer drivers and needed an admin to finish the install process. Before they could just double click on a printer on the 2003 server to install it.

Thanks for input on this.
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2 Solutions
Greg HejlCommented:
go with 2008

print manager is easy to work with and it works best for windows 7 (which you will migrate everything to)

does not have to be a DC

printer installs can be handled through GPO's

Deploy the printers using GPO, but first you have to change driver installation security settings for printers using Group Policy.

The default security settings for Windows Vista and Windows Server 2008 allow a user who is not a member of the local Administrators group to install only trustworthy printer drivers, such as those provided with Windows operating systems or in digitally signed printer-driver packages.

To allow users who are not members of the local Administrators group to install printer connections that are deployed using Group Policy and include printer drivers that are not digitally signed, you must configure the Point and Print Restrictions Group Policy settings. If you do not configure these Group Policy settings, users might need to provide the credentials of someone who belongs to the local Administrators group.

BryceRichertAuthor Commented:
So the days of just letting someone double click on a printer from a server to install it locally without having to mess with GPOs are over?
Greg HejlCommented:
apparently that's too much to ask your users to do nowadays

you do get better control and another reason not to give admin rights.

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