I am having the same problem. I tried removing all printers from the control panel and trying again. sounds the same as joeychan...
This is what I tried and experienced:
1. Brand new PC which is Dell Inspiron 64bit with Windows 7 and only 4 days old.
2. With printer off and disconnected, started the Lexmark driver
3. The driver installer instructs me to connect and turn on the printer (and the installer won't continue until it detects the printer).
4. Almost instantly when I connect and turn on the printer, a windows taskbar popup says the driver install failed and the device won't operate properly.
5. after a few seconds, the Lexmark installer continues and installs drivers
, but the printer never works. I assume the instantly installed non-working Microsoft printer driver persists. I then remove the Microsoft drivers and try again with same result. I wish the lexmark drivers would install without requiring the printer to be on.
I don't think there's any firewall, but there might be one built into the McAfee preinstalled trial antivirus.... i will try to uninstall the firewall part and try again.