Adding printer on Server causes all printers to disappear for all users

I am trying to add another HP LaserJet P1102W printer on a Server running 2008 Datacenter. I have already added 2 of these with no issue. After installing this third one, though, all users immediately lose all of their attached printers. If I delete the offending printer, all users get all of their printers back (sometimes requires them to reboot).
After an hour on the phone with HP (offshore) they said that they don't support printers on servers and that it's a Microsoft problem.
Has anyone seen this (and hopefully resolved it) ??