Win 2008 Terminal Server Printing Problems

I am running Win 2008 Terminal Server and have the strangest issue yet.

User running XP SP2, using RDP 6.1, .NET 3.0 SP1, working on the Terminal Server box in Excel 2007 with latest updates.

I have the printer (Laserjet P2015) installed directly by IP on the Terminal Server. The user also has the printer installed by IP on her machine. The strange issue happens when the user prints a spreadsheet in Excel using the ‘Redirected printer’. It shrinks the spreadsheet to 1/2″ big on the corner of the page. I have never seen anything like it!

When she prints the same spreadsheet using the local printer on the Terminal server, it prints fine.

Does anyone have any clue on this?

Thanks!
DMM