Printing nightmare

Hi, I've created a webservice that calls Sql Server Reporting Services and
then prints the image to a printer specified by the windows print name e.g.
\\server\printer

I had a bit of a nightmare setting this up since I am not a network expert.
Here is what I did.

1. I shared my local printer.
2. I went in to the Local Security policies on my local machine and set "Let
Everyone permissions apply to anonymous users"
3. On the web server I added a new printer which is \\server\printer

This then worked fine for me since the webservice is not-authenticated and
therefore prints anonymously to my printer (I see user ANONYMOUS in the
print queue).

Now I am not a domain user so I tried this with a domain user and it doesn't
work. The printer gets the job but it just deletes it with an error.

So I decided to log the user on within the webservice. I setup a dummy
account that belonged to the USERS group. I then logged the user on with it
and tried to print to my local printer. This time it couldn't access my
printer. So I tried the Administrator for the web server....same
problem....so I tried the domain administrator for the server....same
problem again.

So I am at a loss....why can I print to my local printer when I am anonymous
but not when I'm logged in on the server, seems a bit weird.

Any suggestions/help/ideas would be greatly appreciated.

Thanks,

Craig