Getting Microsoft Access error "The open report action was cancelled".

I am using a standard Microsoft Access database. I have 2 machines one with the smart label printer connected via USB. This printer is shared (i.e \\user\printer) to the second PC.
My problem is i can't print a label address from the database onto the smart label printer using the second PC. when i attempt to preview the label i get the following error "This document was previously formatted for the printer smart label printer 450 on USB002, but the printer isn't available.
It gives me 2 options first is to "preview" and second to select "setup"
If i select preview i get the following error; "The OpenReport action was canceled".
If i select "setup" i have the options for margins, page columns and the option to chosse either the default printer or select one from the list. My smart label printer isn't the default so i choose it from the drop down.
I have set the margins to the correct size and all other settings. There is only one option that is grayed out. This is for the paper size. The other machine has this set to 54mm x 101mm. For some reason i can't choose this option. The drop down just shows a blank list.
I have installed the smart label printer from the CD and drivers from the website. I though this may provide me with the settings for that drop down box. Unfortunately the list remains empty.

Any ideas?

Thanks in advance.