Microsoft has written Knowledge Base article Q246855 - Managing Network Printing in a Windows 2000 Environment.
"Point and Print reduces administrative overhead, and simplifies and automates printing. Point and Print functionality was introduced in Microsoft Windows 9x (as a client), and Microsoft Windows NT 3.5 and later.
When you connect to a printer on a print server, the connecting client looks for the appropriate drivers on the print server. If the drivers are installed on the server, the drivers are automatically downloaded and configured for the client. However, if the drivers are not present, you are prompted to select and install the drivers.
This article describes the results of improperly configured or incompatible Point and Print situations, and provides solutions to those situations.
When you attempt to connect a Windows-based network client to a print server, you may receive the following error message:
The server on which the device name printer resides does not have the correct printer driver installed. If you want to install the driver on your local computer, click OK.
This error message can be displayed in any of the following situations:
When server message block (SMB) is connected to the print server.
When a Windows 9x computer is running File and Print Sharing.
When an Alpha-based computer running Windows NT 4.0 Server connects to an x86-based client without an Alpha print driver.
When you connect to a printer using the new Internet Printing Protocol (IPP) and an appropriate driver is not installed on the Internet print server.
If you receive the error message in one of the situations described above, use the appropriate workaround."