Excel (only) no printer installed

After logging in to domain, user cannot print to any installed printer (network or USB) from Excel 2002. Gets error “No printers are installed.” Details go on to say, in Windows XP, Add Printer and follow Wizard …. Also a default printer cannot be set. If user does install printer, Excel will print, but if user logs off and on again, the newly added printer is now also ‘not installed’.
Tried removing and re-installing Office 2003, and deleting local user profile, to no avail.
Seems to to happen with other (teacher) users with a GP set, but not with other (student) users with a different GP.