The error message you get is because of a Group Policy that by default disallows installation of printers using kernel-mode drivers. Kernel-mode drivers have access to system-wide memory, and poorly written drivers can cause Blue Screens. To allow installation of these kind of drivers, follow these steps:
Click Start and then Run
Write gpedit.msc and press ENTER
Navigate to Computer Configuration / Administrative Templates / Printers and change Disallow installation of printers using kernel-mode drivers to Disabled