I recently had this issue come up on a couple of computers and researched for what seemed like forever to find a solution. Many of the other solutions out there have you editing registry keys, deleting files in the C:\Windows\System32\Spool directory, etc. But the solution is much simpler than this.
This error will occur if you have a bad copy of the driver already installed on the computer. While some of the fixes mentioned above may fix the issue, this is what worked in my two test cases.
- Click Start and type Print Management in the start search, then open the management console.
- On the left, navigate to All Drivers
- Locate the driver for the printer you wish to install, then Right Click > Delete
If you are unable to delete the driver, you may need to stop the Print Spooler Service in the Services Console.