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printer deployment

vanderfield used Ask the Experts™
We have a windows 2003 standard SP2 32 bit print server for all the company printers.  We are in planning stage of deploying printers for our first windows 2008 64 bit terminal server, each branch/users that will connect to the terminal server will have their own set of printers. We are trying to automate the process so that when a user logs onto this server for the first time they will have available all the printers applicable to their branch.  Here is what we have tried so far.

Printers are deployed using windows 7 print management via “deploy group policy”. Group policy object is created in windows 2003 sp2 32 bit domain controller.

Here's the set-up:

From print management printers are deployed to GPO's stated below,

OU ( Single Terminal Server Head Office) computer object

             GPOABranch A - Security Group A - user 1 Printer 1 and 2
             GPOBBranch B - Security Group B - user 2 Printer 3 and 4
             GPOCBranch C - Security Group C - user 3 Printer 5 and 6

Under the security filtering we have authenticated users and the security group added. In the computer configuration, prevent users from installing printer drivers is disabled and loopback processing mode is enabled. Then in User configuration point and print restriction is disabled.  

What happens is the printers that appear on user 1, also appear on user 2 and 3, so instead of having only their own branch assigned printers everyone gets all printers. I tried removing the authenticated users but no printers are applying to any users. I tried adding another user group on the delegation tab, advanced, then deny apply group policy to exclude the other branch from getting the printers but it's not applying. Running group policy result for the test users yield all the GPO's applied to all of them, GPOA, GPOB and GPOC.
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I was able to fomulate a batch file that the users would execute tailor fit to the printers they need. I could just put the file on their desktop then erase it once the printers are installed. The batch file is this:

@Echo On
rundll32 printui.dll,PrintUIEntry /in /n "\\servername\Printer1"
rundll32 printui.dll,PrintUIEntry /in /n "\\servername\Printer2"
rundll32 printui.dll,PrintUIEntry /in /n "\\servername\Printer3"
@Echo off