We are getting ready to roll out new version of our Terminal Server. It is running Windows Server 2008 R2 Enterprise Service Pack 1. The system is able to pickup all the printers that are installed native on the client's machine and it will print if the job is sent to an IP Networked printer but fail to print if the job is sent local (i.e. USB connected) printer. All the printers are showing the Printer Model as: Remote Desktop Easy Print and I verified that the Local Group Policy for "Use Remote Desktop Easy Print printer driver first" is enabled on the server.
Is there a solution to resolve this issue?