I've not been able to set up a direct attached (USB or Parallel) printer under limited account in XP Pro. I use admin to install and it shows up for all users. I once had a problem with a printer so deleted the printer, powered off, rebooted and recreated it. That solved the problem.
One thing I noticed in the nice link gracie7
provided - there seems to be some issues with user names with spaces. I always use profiles of 8 characters or less - last name + initial and a number if there is more than one person with same last name and first initial. ex. smithsoj, smithsj1.
That way it's easier to set up multiple platform signons where spaces aren't supported. Same with printer names. Some platforms don't support spaces, some do.
It's a habit from my mainframe/midrange heritage. It may be handy as home/SOHO nets progress to multisystem environments