peterm if I may, I had the same problem in the past, took me nearly a week to get the dang thing to work and stay working when new computers connected etc. the first problem is that it's an HP but obviously we can't fix that. now the only problem is I'm an idiot and didn't document what I did to fix it so I'll try to remember.
so...........
hang on let me boot up an XP computer here and walk through it... I'll edit post
[edit] for simplicity sake we're going to change the share name of that printer, on the host computer (the one the printer is connected directly to) go to control panel>printers and faxes right click the printer and select sharing, now make sure share this printer is checked (never discount the obvious

) and change the share name to bleepingprinter or something very simple, no spaces or anything fancy just one word.
now the second thing we're going to do is make sure make sure that both computers are in the same workgroup (if you don't know what that is just understand that Msoft is retarded for even pondering the idea of incorporating it into any sort of home based software whatsoever) so (on both computers) go to start>run> and type "sysdm.cpl" without quotes and press enter. when this comes up you should be on the general tab, click the computer name tab, and there will be a button in there that says "change" click that and change the workgroup name on both computers to "WORKGROUP" and if your computer name is too complicated change that too while you're there. it will ask you to restart, do so.
now that both computers workgroups have been changed and restarted go back to the add printer wizard and use the second option on the second page and instead this time try using browse for printer, if you can't find it there try typing it in that second option again, let me know what happens.
Edited by pr0n, 28 March 2008 - 10:09 AM.