If you want to hide printers installed on Terminal Server, please explicitly remove everyone 'print' permission in security option of printer properties (Control panel->printers->right-click printer to choose prosperities->security option) and enable UAC.

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If this user is a member of administrator, please also remove 'print' permission for administrator group. To do so, you can hide printers installed on Terminal Server for the users that you want to hide. If you want to let some users to view a printer, just assign them the 'print' permission in security option of printer properties to these users.