While setting up a client for remote desktop using Windows XP Pro to remotely access Windows Server 2008, I discovered that the clients local printers weren’t accessible by the server. After much Google searching, I discovered that (mstsc.exe) RDS 7.0 is now available for XP. This solves the problem with RDS Easy Print. The latest RDS 7.0 is available here.
Here’s a great post that describes Windows Terminal Services Easy Print in detail.
Good troubleshooting tips are provided at Remote Desktop Services troubleshooting.
Update. The client was able to initially print to the local printer after installing the update. However, it was not reliable and the printer did not always show up.
To solve the problem I actually physically connected the printer to the server and installed the drivers from the originally installation disk. The driver downloaded off the Canon website would not install without the printer being physically installed.
After doing this, the printing now works great from Server 2008 to Windows XP Home.