Microsoft Remote Desktop Connection provides the ability for users to use the printers installed on their local computer within a Terminal Server session. This behavior is enabled by default, and can be changed in MSTSC (the Remote Desktop Connection client) in Options, Local Resources tab, Printers.
In order for this to work, a printer driver must be installed on the Terminal Server that matches the driver installed on the local computer. This is problematic, since you can't always be sure which printer is installed on connecting computers. If there is no matching printer driver on the server, the user will be unable to print to that printer within the RDP session. You will also see an error in the System Event Log similar to the following when the user
logs into the Terminal Server:
Event Type: Error
Event Source: TermServDevices
Event Category: None
Event ID: 1111
Time: 12:51:15 PM
Driver HP LaserJet 4250 PCL 5e required for printer !!SERVER1! NetPrinter2 is unknown. Contact the administrator to install the driver before you log in again.
To handle this issue without having to install tons of drivers on your server, you can tell the server to use a "fallback printer driver." If the exact driver is not installed, the server will offer a fallback PCL or PS driver (or both) to use instead. This is configured in Group Policy as shown below. Note that this requires Windows Server 2003 SP1 or later.
For Windows Server 2003, open Group Policy and navigate to Computer Settings, Computer Configuration, Administrative Templates, Windows Components, Terminal Services, Client/Server data redirection, and configure the Configure Terminal Server Fallback Printer Driver Behavior option.
For Windows Server 2008, open Group Policy and navigate to Computer Configuration, Policies, Administrative Templates, Windows Components, Terminal Services, Terminal Server, Printer Redirection and configure the Specify Terminal Server Fallback Printer Driver Behavior option.
Configure the Terminal Server Fallback Printer Driver Behavior to Enabled, Show both PCL and PS if one is not found, as shown below.
When a client logs into the Terminal Server, you will now see the following event in the System Event Log and the client will be able to use their printer.