While using RDP, cannot print locally

I've setup a Windows 2008 server running Terminal Services (RDP) with five licenses applied.

We can login with no problem. Before logging in I performed this:
To make a local printer available in a Remote Desktop session: 1.Click Start, point to All Programs, point to Accessories, point to Communications, and then click Remote Desktop Connection.
2.Click Options in the Remote Desktop Connection dialog box.
3.Click the Local Resources tab.
4.Click Printers in the Local Devices box.
5.Click Connect.

When I try printing to a local, print, I select it and click print. It says it printed but nothing is printed. I was able to add a sharred printer to the server that is an a Win7 destop what is not in the server's domain. At that point, I can do a test print from the server to the printer, but while connected by RDP, I cannot print.
LVL 25
Tony GiangrecoAsked:
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I assume you are performing step 1 on the client computer?  

What OS is running on the client computer?  
Any service packs installed?  
What version of the Remote Desktop Connection client are you running on the client computer?  

Is the Windows 2008 terminal server configured to use Easy Print?  If not are the drivers for your printer installed on the terminal server?  What driver is listed on the redirected printer object within the Remote Desktop session?
Tony GiangrecoAuthor Commented:
We tried two clinet Pc's: 1 Win7 ultimate, i Win xp pro.

The XP pro is on a client's domain in another location. The Win7 is on my office. It's not in any domain. the HP deskjet printer is hooked up to the Win7 ultimate pc and prints perfectly.

We also tested printing to a laser printer On the WinXP box where it's in a win 2003 domain with a networked laser printer. Same reults - says it printed, but nothing in the print queue and nothing printed.
Maen Abu-TabanjehNetwork Administrator, Network ConsultantCommented:

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Tony GiangrecoAuthor Commented:
I'm unabe to open a port on the router right now.  Any other fix?
Maen Abu-TabanjehNetwork Administrator, Network ConsultantCommented:
what the router type you use?
Tony GiangrecoAuthor Commented:
Linksys WRT54G
Maen Abu-TabanjehNetwork Administrator, Network ConsultantCommented:
just to figure it out , you don't know how open forward ? or other problem?
HP Deskjet - is that a USB printer?

Do you see it as an available printer when you try to print from Remote Desktop? Shows up as the name of the printer and the name of the local computer in parenthesis behind that.
Tony GiangrecoAuthor Commented:
Here is the fix that resolved the problem. I will award points anyway sine you all helped me understand RDP and it's implications.
Tony GiangrecoAuthor Commented:
Sorry, here is that link
Tony GiangrecoAuthor Commented:
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Windows Server 2008

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