Problem/Solution:
Windows 7 (64bit) trying to use a shared USB printed hosted by Windows XP. Windows 7 add printer can browse to printer BUT gets an error:

Operation could not be completed (error 0×000000709). Double check the printer name and make sure that the printer is connected to the network.

Solution:
Go to the command prompt and type
Net Use LPT1: \\xppc\printersharedName    (the printer path on the network)

Then add the printer as a local LPT1 printer just as you would a standard printer

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