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Error Message When trying to install a shared network printer on a Windows Server 2003-based or Windows XP SP1 based computer

You may come across this issue if you are trying to install a third-party printer driver on the print server.

A shared network printer which has a third – party  printer driver cannot be installed locally on a Windows XP SP1-based computer.Windows XP SP1 does n’t permit regular users or members of the Power Users group to install third-party drivers.

In Windows XP SP1, only the following people have permission to install a third-party driver:
  • Local administrator.

  • Members of the Administrators group.

  • Members of the Power Users group with the "Load and unload device drivers" policy permission.
Windows XP SP1-based computer

If both the Windows XP SP1-based computer and  a Microsoft Windows NT 4.0-based domain is joined then  regular users and members of the Power Users group can install third-party printer drivers

But you may get problems in installing a third-party printer driver on a Windows XP SP1-based computer if Windows XP SP1-based computer is part of a workgroup or part of a Microsoft Windows 2000-based domain.

Windows Server 2003

In Windows Server 2003:
  A shared network printer cannot be installed locally if the printer is using a third party kernel mode printer drivers. The policy setting in Windows server 2003 prevents users from doing this:

You get the following symptoms if you try to install a shared network printer:

  1. If you try to install the printer on a Windows XP SP1-based client by using the Add Printer Wizard or by using the printer share name from the \\PrintServerName\PrinterShareName location, you receive the following error message:

    “A policy is in effect on your computer which prevents you from connecting to this print queue. Please contact your system administrator.”

  2. If you try to install the printer on a Windows Server 2003-based client by using the Add Printer Wizard, you get the following error message when you click Finish to complete the printer installation:

    Unable to Install Printer. The printer driver is not compatible with a policy enabled on your computer that blocks Windows NT 4.0 drivers. If you want to use this driver, contact your system administrator about disabling this policy.”

To resolve the problem, modify the Group Policy settings for the Group Policy object (GPO) that has printer policies defined for the domain users . For this, follow these steps:
  1. Configure the Load and unload device drivers policy permission for the Power Users group.
    • Click Start > Programs > Administrative Tools > Active Directory Users and Computers.

    • In the left pane, right-click your domain name, and then click Properties.

    • Click the Group Policy tab, Select the GPO that you want to modify, click Edit.

    • In Group Policy Object Editor, Find  and click the Computer Configuration\Windows Settings\Security Settings\Local Policies\User Rights Assignment folder.

    • In the right pane, Find and double-click Load and unload device drivers.

    • Click and select the Define these policy settings check box, click Add User or Group to add the Power Users domain group.

    • In the Add User or Group dialog box, click Browse to locate the Power Users domain group. Under Enter the object names to select, type Power Users, click Check Names to resolve the group name. Click OK twice.

    • Click OK to close the Load and unload device drivers Properties dialog box.
  2. Turn off the Disallow installation of printers using kernel-mode drivers policy.
    • In the left pane, locate and click the Computer Configuration\Administrative Templates\Printers folder.

    • In the right pane, locate and then double-click Disallow installation of printers using kernel-mode drivers, click Disabled > OK.
  3. Disable the Point and Print Restrictions policy.

    • In the left pane, locate and click the User Configuration\Administrative Templates\Control Panel\Printers folder.

    • In the right pane, locate and then double-click Point and Print Restrictions, click Disabled > OK.
  4. On the File menu, click Exit.
  5. Click Start > Run, type cmd.exe, click OK.
  6. At the command prompt, type gpupdate /force, press ENTER.
  7. Repeat steps 5 and 6 on the Windows XP SP1-based and Windows Server 2003-based client computers of the domain.
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