I have Windows 7 (Win7) system with Canon iP5200 printer attached via USB. Also on same network I have a XP system to which I can also plug the printer if needed. Of course much easier just to share printer between the two.
So I set up share options on Win 7 for printer and went to XP system and via Control Panel added new printer. I assumed that as this was a network printer I chose add network printer option, and after 2 hours of frustration and googling discovered that I should have used add Local printer, and add another printer port, into which I added network address of printer.
Following are screen shots.
