We have some network printers that Toshiba suplies generic drivers for on the CD. Now installing the 64bit edition works fine on the Server, but when I try to add a 32bit driver for those clients, the dialog tells me this.
I've tried the "32bit drivers on the CD" and the ones on Toshiba's site, neither of them work , however the 64 bit drivers on the site work and result in the same effect as the CD. Also note that trying to load directly on a client doesn't work either.
Update
The workstations accept the drivers, but the server still gives the error. Though I now have an alternative, I would really like to deploy with GPO.
So I'm gonna break the bad news for you. It sounds like there is no support for that printer on 2008R2. I had a similar issue in the past with 32 bit print drivers for XP on a 2008R2 print server, and the solution in the long run was to upgrade all the clients to Win7.
The fact that there's no Win7 driver for the printer makes me believe that there is no support for this printer on this platform, as 2008r2 and Win7 share the same code base.
Basically, it sounds like you're out of luck. If you're stuck, you might be able to run a virtual machine with 2003 somewhere and have your XP clients pointed there.