Win 2008 r2 Remote Desktop Services- trying to print on redirected printer. Nothing happens and job is deleted from spooler immediately

gpmdev used Ask the Experts™
I have a Windows Server 2008 R2 Remote Desktop Terminal Services server.
2 x end user's from a remote site who are both using Windows XP remote connect using RDP.

After logging onto the Terminal server, and try to print to a redirected printer (via Remote Desktop Easy Print) - event the "Print a Test Page" option in Printer Properties - I see that the file goes to the spooler then immediately gets the status "Deleting". I get no errors in the event viewer. I can't seem to figure out why that is happening.

This works fine when they log onto a Windows 7 x64 pc and connect to the terminal server and print fine.

They are able to print locally from Windows XP to the affected printers, which are -
HP Colour Laserjet CM3530

I have installed HP Universal printing drivers for x64 and x86 for PCL5 and PCL6, as well as the Colour Laserjet CM353 MFP PCL6 x64 and X86 drivers on the terminal server, but to no avail.

I have also logged onto a Windows XP in my office and I am able to print without any issues via the terminal server remote desktop easy print.

I am running out of ideas, but its only these 2 x pc's at a client site which are having this issue. Any suggestions would be helpful

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