I ran across a problem in which a few computers running windows 7 would have their print spooler fail repeatedly.  This would obviously not allow anyone to print and could not be fixed by restarting the service nor changing the print spooler directly location. I am installing printers using Bonjour for Windows Services but this fix seems to work for printers added through Add New Printer Wizard as well.

To fix the problems in my cause.¬† Navigate to the folder c:/windows/system32/spool/printers/drivers РHere delete the entire contents of the directory.

Now delete your printer or go back to the bonjour add printer wizard and reinstall a printer.¬† It should now work Рit appears that a corrupted print driver is the most likely cause of this type of print spooler error and Рhaving Bonjour reinstall a newer driver with all older drivers cleared seems to be the fix.

You can also use this fix it tool from microsoft http://windowshelp.microsoft.com/Windows/en-US/Help/8c11977e-8244-408f-a036-7978a618d7a21033.mspx#EOD

Although it is probably a lot quicker to just delete the drivers as I mention up above and reinstall using Bonjour (or Add new Printer).  I would use the fixit tool as last resort.