I have a similar problem. I have XP Pro computers as both a host and a remote, but I can't print locally to an HP Officejet d135 which is connected to my remote computer via a USB connection. This is a multi-function printer.
On the other hand, I also have a remote Apple MacBook. I downloaded the newest RDC Ver. 2.0 for Macs. I CAN print locally - but I have NOT loaded the local print driver to the host computer.
Why does the local Mac work and the local XP Pro does not? This makes no sense to me. Is there a newer version of RDC for windows based computers that will allow for local printiung on a USB connected printer?