We had an issue when we started rolling out IE7 and plugins into a package.
Suddenly users couldn’t print from it. However, administrators could. The logic here says that users don’t have sufficient privilieges to write to whatever folder it dumps the print to. Correctly so we applied a GPO for machines to give users full access to c:\windows\temp – voila problem solved!
Another solutions is to remove the following from the .OSD file.
Which makes the users dump the temp print file to their temporary internet file folder