Unable to share printer!

Short Version:
When trying to enable printer sharing on Win7Ultimate PC, receive "Printer settings could not be saved. Operation coupld not be completed (error 0x000006cc)." when I click the apply button after checking the "Share this printer" tab. Printer works fine locally otherwise.

Long Version:
2 PCs - 1st PC is Win7 Ult with local printer attached via USB (Canon ip5200). 2nd PC is WIndows XP Home. Worked fine as a shared device ever since I installed Windows 7 Ult right after it came out. Rebooted Win7 PC and now WinXP machine cannot print. All jobs error. Delete/Add printer back to WinXP machine fine. Still cannot print. I can however see printer status (inkjet levels, etc) on WinXP machine.

Uninstalled printer on Win7 box, rebooted and added printer back in. Now when I try to share it again (regardless of the name I give it), I get a error "0x000006cc". Remote PC (WinXP machine) also cannot see printer any more.

One thing to note is a new version of Avira 10 on both PCs (Avira firewall was never installed) was installed 2 days ago. Several reboots since then. No changes to windows firewall settings until this trouble happened and I experiments with a few. No difference. Same with uninstalling Avira.

I see this message as well in the Administrative Events logfile:

"The print spooler failed to share the printer Canon Inkjet iP5200 with shared resource name Canon Inkjet iP5200, Error 1740. The printer cannot be used by others on the network."