Have seen this problem on several networks now. The shared printers all work fine and then one day the remote clients suddenly start to demand that a driver is downloaded from the network printer machine on which the shared printer is connected.
Can confirm this happens to Seiko 440 and 450 printers but can occur in other brands.
You allow the driver download and it seems to momentarily start but then says it can't connect to the printer that it could see just moments before with error 0x000003e3.
If you remove the printer from the client and try to setup a network printer again you can see the printer over the network but when it offers to download a driver you get error message 0x000003e3 again that the printer is unavailable. You don't seem to be able to say "don't download a driver because you already have one on this machine" but suspect this is a registery setting.
This can even happen when both machines are running identical versions of Windows 7. So it's not a "needs different drivers" issue.
I suspect a windows update to be the source of the problem and this seems confirmed by a previous post.
Reinstalling the software locally and then switching the port to the remote printer, I haven't been able to make work as it still insists to download a remote driver which then fails or doesn't recognise the remote port.
I once found a workaround by creating a new user account on the client machine which when I tried to connect to the remote machine with the shared printer it asked for an authentication login on to the remote machine. Once that happened the network printer installed fine. However, this solution didn't work in another case!!
I suspect some network authenication problem between the machines. Networked machines remember they can "talk" to each other after the first contact is established but I think an update has caused this to break in some cases. In the above cases the client and network printer machine did not have a password set on the user accounts. This might be important. Maybe you must have a password set.
I've looked for a way to break and re-establish first contact between machines which is probably done in the registery but without success.
Anyway that's what I've discovered so far.