Our environment:
200 users, 50 printers (I know that ratio is ridiculous but I am stuck with
it)
I am using Server 2003 R2's Print Manager and I am pushing printers to users
in security groups through the console and pushing the
"pushprinterconnections.exe" file as a logon policy in a GPO. All of that
works wonderfully.
All users are XP Pro with SP2 and are updated weekly through WSUS

Problem:
Users get a random error when they go to print to their default printer:
"Windows cannot print due to a problem with the current printer setup." This
will be to a printer that they successfully printed to before. If they click
print again they can usually print to their default printer, if that doesn’t
work then you set another printer as default, then set your original printer
back to default, then print. This doesn't always happen but when it does it
is always the first print of the day. It is acting like it loses its default
printer or the driver to the default printer but when you go into Printers &
Faxes there is always the correct default. This problem happens randomly for
many (if not all) clients whether on their own PC or in terminal services to
a server.

Not a security issue, this happens to even Enterprise level admins, and all
printers are setup with correct security.