From the Kenosha News on 3-12-06

Share your home printer between multiple computers

The instructions below allow you to share one printer between any computers that connect to your home network using a router or hub. The process is somewhat long, so have patience and follow the steps carefully. Note that the computer attached to the printer needs to be ON whenever anyone wants to use the printer.

Only Windows XP, 98, and ME support this, and it's best to have the printer attached to a WinXP computer. (I have not tested these instructions in Windows ME.) The process requires a floppy disk or a USB memory device. First, on the computer with the printer connected, follow these steps to set up your home network. These instructions are for Windows XP. Click Next or OK on each screen to advance to the next.
1. Click Start and go to Control Panel
2. Double-click Network and Internet Connections
3. Select "Set up home or small office network"
4. Click Next twice.
5. Select the second option from the top of a "Residential Gateway"
6. Name the computer you are using. You can name it by brand (e.g. Dell), by location (e.g. Basement) or whatever distinguishes it from your other computers (e.g. BusinessComp).
7. Fill in a workgroup name. This is very important. You can use the default of MSHOME, but I recommend a more unique name, possibly your last name. WRITE DOWN what you choose since you'll need to know it for the other computers you set up.
8. Click the option to turn ON file and printer sharing.
9. Check the settings listed on the screen and click Next.
10. If your other computer is not WinXP, select "Create a Network Setup disk" and follow the instructions on the screen to select your floppy drive or USB memory device. Skip this step if your other computers are WinXP.
11. Click Next and Finish. You may be prompted to restart.

Now move to the second computer. If it uses WinXP, repeat the above steps. If it is Win98, insert the floppy disk or USB memory icon, and double-click on the file called netsetup. This will begin the network setup process:
1. Click Next several times.
2. When prompted to do so, give this computer a name different from the first one.
3. When asked to specify the workgroup, make sure to use the same name as for the first one.
4. Click Finish to end the process. Restart when prompted.
Repeat for each additional computer.

Now your home network is set up. Go back to the computer with the printer attached. Click Start and go to Printers. Right-click on the icon for the printer you want to share. Drag down to the Sharing option. Click in the circle next to Share. Click OK.

On your other computer(s), the printer may magically "show up" in the Printers window. If it does not, go to the Printer control panel to add a printer. Select a “network printer or printer attached to another computer.” Browse for a printer. Look for the workgroup name you selected under Microsoft Windows Network. Double-click on the name of the computer with the printer attached. Double-click on the printer’s name. Click Next, then Yes. Answer the default printer question, then click Finish. The printer should now appear on the list.

By Carol Sabbar from the Kenosha News on 3-12-06