Peter is only partly right-----he has failed to come up with all the reasons your initial install failed---nor should you assume that just because some function of your printer driver work that all is working. But Peter is right in saying you must uninstall and try again---and getting everything uninstalled may be another problem in itself.
I have had exactly this problem with printer drivers from HP and Lexmark---in both my cases it was due to the printer driver assuming that a dll it needed was both on my system or in a given place. Which often is not the case with computers that have been around the block a few times as their dlls often get moved. In that case, you basically have to use your windows install disk or a downloaded dll during a re-install to correct that.---and then play games during the reinstall to force the printer driver to look for the dll elsewhere.
In other cases I have heard of, even if the user gets everything installed correctly, and then plugs in the USB cable, the processor will get stuck in a do forever loop trying to find something until it times out, and by then the new hardware wizard has timed out also. And curiously what may then work is to uninstall and then reinstall the printer drivers, then to press ctr-alt-delete to check processes right after you plug in the usb cable, and then to kill the top running process. And then the find new hardware wizard will then shift to the next process, install the printer drivers correctly, and then things work out.
But my reaction is that its the printer manufacters job to write drivers that install in ALL computers with a given OS. And rather than waste time and torn out hair, give their tech support department a chance to help, and if they just try to blame windows, I will just take the printer back for a full refund. In both my cases I wasted so much time doing the job that 20 20 hindsight, it just was not worth it.