We got the tip from following link and all we do here is to structure the instructions in a better format
http://windows7forums.com/windows-7-support/39605-printer-driver-network-printer.html
1. Open Devices and Printers
2. Select add printer near the top menu bar
3. Select add local printer
4. Choose Create a new port and local port from drop down arrow Click Next
5. In the enter a port name do one of the following
1. \\MachineNameHostingPrinter\Printer’sShareName or
2. \\ipaddressOfMachineHostingPrinter\Printer’sShareName
6. In the install printer driver dialog box do one of the following
1. In the left panel select your printer manufacturer and in the right panel select your printer model (to use Win7 native drivers) if you’ve already had the Epson attached and installed on the Windows 7 machine, this step should work for you.
2. Select the have disk button and direct the install process to the folder where you have download and extracted the Win 7 drivers for your printer. Unfortunately if Epson doesn’t provide any Windows 7 drivers this step will not work for you.
We hope the above instructions relieve some kind of stress for hardware teams!
Regards,
Admin
wow! many thanks for this — i’ve spent two days looking for a way of printing from a Windows 7 64-bit machine to a shared Epson LQ-1050 printer hosted on an XP machine — and this worked! it’s great to finally come across a solution based on direct knowledge of the problem :)