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Citrix and Windows 7 local Printer issue

Have customers that recently upgraded from Windows XP to Windows 7 pc's.  I am currently using a cloud host for them that provides Citrix Xen App servers on Server 2008 R2.  When the customers had XP pc's, the network printers were set up locally on their pc's, and hsoted apps printed to them with no issue.  As soon as I switched out the pc's were switched to Win 7, once i installed the network printers again locally, the users started having problems with the hosted apps trying to print to the local printers.  While anything installed locally printed just fine, the hosted apps would show the redirected local printers as "offline" in the cloud often.  Is there a reason why this is happening with Win 7 and local printer redirection?
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I don't have access to Citrix Policy; my host handles that.  I used native drivers with both OSes.  This was a locally installed network printer, in both cases. The users printed directly to the network printers; there was no print server involved in the lan.  I actually downloaded the specific drivers for both XP and Win 7 individually.  The vendor host suggested I try the HP UPD, as well.  It can be limiting as I tried it and it seem to work more consistently, but didn't allow color printing on one printer.  It also doesn't support the specific network print the customer has which will force them to have to buy another.  I  just know something has changed in the hosted environment in the last 2 weeks. i was printing from the hosted environment for more than a year in my office from my Win 7 pc and locally installed HP networked printer.  For the first time today, it showed offline in the cloud after 1 job.  Then I switched to the HP UPD, and it was more consistent.