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Getting closer...? I should have added to my original post that when trying my HP printer I also got the WinXP "this USB device could run...
Thanks for the responses. I tried a Dell laser printer to see if that would work but for some reason that just gives the "must wait 5-10 seconds"...
Bumping, still hoping for an answer...
When I first installed and tried out parallels, I tried to choose my printer under list of USB devices and got the "must wait 5-10 seconds"...