I am installing Web Server 2008 for my home network. I have 2 USB printers that I am connecting to this machine and want to share these printers so that my other machines can print to these 2 USB printers. (I previously had Win Server 2003 on this machine and was able to share both printers fine.) File and Printer sharing Inbound Role for my Private network is enabled, when I go into Network and Sharing Center and try to turn ON Printer Sharing, it never sticks. It always stays on OFF. I go to my installed printers and try to Share them and get the following error message:

Printer Settings could not be saved. Remote connections to the Print Spooler are blocked by a policy set on your machine.

I have not been able to find a policy on my machine that is preventing this. I have searched a lot over the past few days and most of the results say what I have done should work and there are also a number of search results that say Printer Sharing on Web Server 2008 is not allowed and you have to hack it.

Has anyone installed Web Server 2008 and shared printers before? If so, what are the detailed steps you took to get this to work?