samba - Jul 2002 - Printing in w2k. Access denied, unable to connect & Failed to open retrying

All,
  I have been trying to get my samba printer working on RedHat 7.3 and I
need some help. I have upgraded to Samba 2.2.5. I do not have the printer
drivers installed on the Samba machine.

Initailly I was having an error on my w2k machines 'Access denied, unable to
connect' but the printing was happening without problem.

I added use client driver = yes into the [printers] section as shown below
but now I get 'Failed to open, retrying'

I tried putting disable spoolss = yes and the following happens - print jobs
would appear in the queue, print out and then remain in the queue as paused.
I would then have to manually delete.

The only share that seems to be working properly at the moment is the
[homes]

Here are the permissions set on /var/spool directory
drwxr-xr-x    2 root     root         1024 May 16 22:49 anacron
drwx------    3 daemon   daemon       1024 May 16 15:11 at
drwx------    2 root     root         1024 Apr 14 21:49 cron
drwx------    3 lp       sys          1024 May 16 15:13 cups
drwxr-xr-x    3 root     root         1024 Jun 10 23:33 lpd
drwxrwxr-x    2 root     mail         1024 Jul  1 04:02 mail
drwxr-xr-x    2 root     mail         1024 Jul  1 04:02 mqueue
drwxrwxrwt    2 root     root         1024 Jul  1 08:14 samba
drwxr-x---    2 squid    squid        1024 Mar 22 14:56 squid
drwxr-xr-x    2 root     root         3072 Jun  8 17:11 up2date
drwxrwxrwt    2 root     root         1024 Apr  8 06:07 vbox

Here is my commentless smb.conf
#======================= Global Settings
====================================[global]
   workgroup = HOME
   server string = Samba Server
   hosts allow = 192.168.1. 192.168.0. 127.
   printcap name = /etc/printcap
   load printers = yes
   printing = lprng
   log file = /var/log/samba/%m.log
   max log size = 0
   security = user
   encrypt passwords = yes
   smb passwd file = /etc/samba/smbpasswd
   unix password sync = Yes
   passwd program = /usr/bin/passwd %u
   passwd chat = *New*password* %n\n *Retype*new*password* %n\n
*passwd:*all*authentication*tokens*updated*successfully*
   pam password change = yes
  username map = /etc/samba/smbusers
  obey pam restrictions = yes
   socket options = TCP_NODELAY SO_RCVBUF=8192 SO_SNDBUF=8192
   interfaces = eth0
   preferred master = yes
   dns proxy = no
#============================ Share Definitions
=============================[homes]
   comment = Home Directories
   browseable = no
   writable = yes
   valid users = %S
   create mode = 0664
   directory mode = 0775

[printers]
   comment = All Printers
   path = /var/spool/samba
   browseable = yes
   public = yes
   guest ok = yes
   writable = no
   printable = yes
   use client driver = yes

# This one is useful for people to share files
[bigdrive]
   comment = Main file space
   path = /usr/bigdrive
   read only = no
   public = yes

[backup]
   comment = Backup Space
   path = /usr/backup
   read only = no
   public = yes