XP Pro.
That might be a clue. If you have more than one user set up on the sytem, and the user access rights are not "out of box", it's possible that the printer can't delete the items that are in the queue, because the software that's driving it doesn't have sufficient access rights to allow it to do so.
Even if it's "out of the box" it might still not be completely happy with it. As a check, when the printer was installed, was it in a user account, or an administrator account.
Another thought, when it was installed, did it ask for an administrator password while installing. If it did, then there's a chance it's put some of the read write files used by the printer software into a folder that the "user" account may not have delete priveleges in.
So, it can write a new entry into the file, and it gets printed, but then when the printer software tries to delete the record, XP pro gets in the way and sticks up a single digit and the application has to retire hurt to the pavillion, having broken the rules.
If that sounds complicated, it is!
I had huge hassles a while back with XP Pro, trying to do a backup within an accounts application. As standard, it's set up to write to floppy discs, and for whatever reason, it was refusing point blank to write to a CD-RW, which is much more suitable. In the end, in the absence of the time to go digging deep into security and permissions, I do the backup to a second partition of the HDD, which it's totally happy to do, then when I exit from the app, do a drag & drop to a CD-RW.
One way round this might be to make the user account into a "power user" account. That's assuming that it's not already got administrator rights, if it has, then this idea may not be so valid, but it for sure was an issue here.
For what it's worth, I'm looking after 6 machines, 5 of them on XP Pro, the other on XP home, and they are all behaving OK with SP2 installed.
Let us know if this helps any
Best of luck