If the printer driver is not found while redirecting the printer then server registers following event ID

Type: Error
Event ID: 1111
Description: Driver drivername required for printer printertype is unknown. Contact the administrator to install the driver before you log in again.

POSSIBLE ACTIONS
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1. The ideal way to recover from this situation is installing the same exact driver on the server for the printer that we are trying to redirect.

2. In Windows Server 2003 SP1 machine If you don’t want to install the corresponding driver you can try using the Fallback Printer Driver Capability.

The policy for this is Computer Configuration > Administrative Templates > Windows Components > Terminal
Services > Client/Server data redirection > Terminal Server Fallback Printer Driver Behavior
For more info refer: http://technet2.microsoft.com/windowsserver/en/library/2284b19b-30a6-42b5-9bd1-ff301f7248b01033.mspx?mfr=true

3. The best tool for resolving issues similar to above is Terminal Server Printer Redirection Wizard Tool. The Terminal Server Printer Driver Redirection Wizard will help you to troubleshoot and replace printer drivers that were unsuccessfully redirected.
This can be downloaded from http://www.microsoft.com/downloads/details.aspx?familyid=9AD27BE9-40DB-484F-862E-38A094EEEAF7&displaylang=en

4. Sometimes multifunction print devices may not be redirected unless you are running Windows Server 2003 on your local computer because they use DOT4 ports. Only W2K3 redirects printer port names that do not begin with COM, LPT, or USB. If you are using an Xp machine use the workaround mentioned in article KB 302361
http://support.microsoft.com/default.aspx?scid=kb;EN-US;302361