Here are some ideas:

If you are using Norton AntiVirus, check for updates. See this article from
Symantec:

Error: "Spool32 error" when printing to a network printer
http://tinyurl.com/tey4

If you are using McAfee VirusScan, then see this article from McAfee.

Spool32 Errors When Printing After Installing VirusScan on Windows 95, 98
and ME
http://ts.mcafeehelp.com/faq.asp?docid=68341&CategoryId=271&chat=

If the printer is not a local printer, install the printer as a local

printer.  Once installed, go to the Printers folder, right-click the printer
icon and select Printer Properties. Click the Details tab and click the Add
Port button.  Click to select Other and then click OK. In the Port Name
dialog box, enter the path to the shared Network printer.  It will take the
form of \\server\SharedPrinterName.

Print directly to the printer.  In the printers folder, right-click the
printer icon and select Printer Properties.  Click the Details tab and click
the Spool Settings button.  Click to select Print directly to the printer.

PattyL