HP Printer problems

Where did you install the driver?
Are you sure you have the tight one?

In general, you do NOT need to install drivers or manually download them with Windows 7!

All you need to do is "ADD NEW PRINTER" and select the Network printer of the \\server\pshare UNC name...
Then when it asks for the driver, you can select from the "GO TO WINDOWS UPDATE" to have Windows 7 check online for latest drivers!

On the Windows XP machine install (just add driver in system) HP LJ 1022 X64 version driver

actually rindi, we tried that.  we connected the notebook to the printer and win 7 installed the printer automatically with no problems.  it even printed.  when we disconnected the printer and moved it back to the XP box and tried to install it over the network share, we get a message that the printer driver cannot be found.

i've been reading that the printer 1022 might be a USB only printer, or at least that the driver might be a USB driver only so we might not be able to do this.

thoughts?

How the printer is connected to the PC you are sharing it from shouldn't matter in my point of view. But maybe something else you could try is to connect it to the W7 PC, share it from there, and then try configuring it and printing via the XP machine using the W7 as print server. If it doesn't work that way either, then I'd guess it could be a "USB Printer only" problem...

if first OS (where is locally installed priver) is X86 and the second OS is X64 verion, you have to install X64 driver version on X86 machine too. Manually install it.

The problem I am having is between a Windows 7 box and a Windows XP box. I tested an XP to XP connection and the drivers were automatically installed and the test page printed, no problem two seconds to add. I am looking for the reason why XP and 7 are having an issue that XP to XP is not.

The reason you are having the issue is one is 32-bit and the other is 64-bit
XP to XP will work cause they are both 32-bit
XP to Win 7 would also work - if they were both 32-bit
You have XP - Win7(x64) which is why it isn't working

As @iraklioracle mentioned you need to install the x64 driver on the XP 32-bit machine in order for this to work
When you connect to a printer share the driver needs to be on the SHARING pc which in your case is the XP machine

How do I install a 64-bit windows 7 driver on a 32 bit OS

1) Download the XP-64-bit driver for the printer you have(note its the XP driver, not Win7 driver)
2) On the XP machine go into Printers folder
3) Right click on the printer, select Properties
4) Click on the Sharing tab
5) Click on the Additional Drivers button
6) Select x64 (Windows XP)
7) Go through the wizard and point to the folder where you extracted the 64-bit driver from in step 1
8) Go to Win 7 machine and add network printer as per normal

If on the Windows 7 PC you have made sure the LAN is set to "Work Network", and the XP PC doesn't use "Simple File and Folder Sharing", and if on the XP PC you have created an Account that exists on the W7 PC and is in the allowed group for the shared object, you shouldn't have a problem.

You cannot install a 64 bit driver on a 32 bit OS, tried it no go. what did work however is:
http://helpdeskgeek.com/windows-7/xp-to-windows-7-printer-sharing