On our Server 2008 Terminal Servers we have Group Policy configured as follows:
Disabled: Computer Configuration/Administrative Tempaltes/Windows Components/Terminal Services/Terminal Server/Printer Redirection/Use Terminal Services Easy Print printer driver first.
Using GPResult we have confirmed that this is the winning GPO and is applying properly to the servers.
This should cause the Terminal Server to redirect client printers using the Easy Print driver unless we have specifically installed a matching driver. However, Event ID 1111 is being logged for every single printer that does not have a matching driver on the server. The Easy Print driver is not being used at all.
RDP shell/control version on my Win7x64 test client is 6.1.7600 (supporting RDP 7.0). RDP shell/control version on the Server 2008 TS is 6.0.6002 (supporting RDP 6.1).