Vista - Printer Sharing

I have a desktop PC with a USB printer attached. Desktop is HP, and printer is HP. Its on a network with a Dlink wireless router. I have added a wireless laptop to the newtork and want to print files from my laptop on the desktop PC. Both machines run Vista Home Premium.

I have set up print sharing, and file sharing. I can share files no problem. On my laptop I can see the printer on the other machine, ie HP Printer on Desktop PC. I can set it as the defualt. So far all looks good.

When I go to print from any application, Word, outlook, Powerpoint, etc the application hangs. When you start Task Manager, you can see an application that says it is trying to connect the printers but its status is non-responding. Also the application that I ran the print from is non-responding.

The print drivers for the USB printer have been loaded from the Widnows website on the laptop. If I plug the USB printer into my laptop, I can print fine.

So what do I need to do to get Print Sharing to work. Seems to me I have done all that I should have.