We ran across this issue today on a Windows Server 2008 print server. The issue seems to be with some of HP’s various printer model drivers. We have also seen reports of the same issue on Windows Server 2003.
When going into the properties of the printer you receive this error: “The ‘HP Laserjet 1200 Series PCL 5’ printer driver is not installed on this computer. Some printer properties will not be accessible unless you install the printer driver. Do you want to install the driver now?”
This appears to occur when you have switched from one version of a driver to another. There is a registry setting that doesn’t get changed. If you are having a similar error, try following the steps below.
Fix Windows Server 2008 Printer Driver Issue
Launch the registry editor.
Browse to HKEY_LOCAL_MACHINE > Software > Microsoft > Windows NT > Print Printers. Find the folder with the name of your printer and then locate the “HPTrayCount” entry.
Most likely the value data is set to “0.” If so, change this to “12.”
Now check your printer properties again and you should no longer receive this error.
Please see these additional links for more information on this error.