Sterling,
I have experienced this exact problem you are describing. Your problem is likely permissions. XP will only allow remote users access to the printer if those users have local accounts on the XP system with the printer. Another option is to set your group/local policy to allow the everyone group to include annoymous users, but THIS IS A BAD IDEA!!!!
I have found another solution:
1. Set system w/ printer to static lan IP, or use dhcp reservation (set remote host name with SME).
2. Install 'other print services' on the XP/2k system w/ printer.
3. Change tcp/ip printer server service on system w/ printer from 'manual' to 'automatic start' in your administration/services.
4. Share & give a share name to the printer attached to the system.
5. Under advanced printer properties, set to NOT use spool, use 'print directly to printer'.
On remote clients:
1. Install LOCAL printer using a new standard tcp/ip port.
2. Use IP address of remote system w/ printer. Enter IP address for port name as well.
3. Select Custom (not generic) port type.
4. Set port type to LPR (port 515).
5. Set queue name to shared printer name on remote system.
6. Check LPR byte counting enabled.
7. Install the same identical driver used on the shared system.
8. Dont print test page, when done, open printer properties and change advanced spool settings to 'spool all pages before printing'.
If you can ping the remote system, you should be able to print to it using tcp/ip (unix printing). Windows permissions do not apply when using tcp/ip print services.
good luck
ryan