The current printer driver is not compatible with a policy enabled on your computer that blocks Windows NT 4.0 or Windows 2000 kernel-mode drivers?

If you received this error it is because The Windows 2000-based versions of the drivers are not compatible with Windows XP or Windows 2003. 

To fix follow the below:

Kernel-mode drivers have access to system-wide memory and poorly-written ones can cause STOP errors.

The system behavior towards kernel-mode print drivers is controlled by a Group Policy Object:

Click RUN, gpedit.msc, OK.

Windows Server 2003 family
Local Computer Policy / Computer Configuration / Administrative Templates / Printers / Disallow installation of printers using kernel-mode drivers or
Default Domain Controller Policy / Computer Configuration / Administrative Templates / Printers / Disallow installation of printers using kernel-mode drivers.

Disable the option.