Print spooler job keeps looping

Have a Win 2000 domain controller which also serves as Terminal server for 14 Win 98 stations.

When client’s are in a Terminal Session and send a print job to the printer (HP960C)connected to Win2000 LPT1 port the job continously loops. The only way I can stop this is by stopping spooler service and deleting print jobs in the Winnt\system32\printer folder. Sometimes this doesn’t function and the server needs to be rebooted.

Any ideas???