My father-in-law has had this problem for over a year, and I can usually expect a call from him every 3 months or so when the issue resurfaces. Everytime I clean out any instance of the HP LJ1020 and reinstall it (after I recover from the print spool error), I do research on this specific issue and this is the first time I have come across this thread. I keep telling him that he needs to ditch this printer an just buy a new one, but he insists that it’s a config issue, because he has the same printer at his business in his office and never has an issue (frustrating, yes).

I have done everything that previous posts have mention, except for changing the default data type to RAW, and bypassing the spooler by printing directly to the printer. Once I reinstalled the printer, I made these changes. So far so good… if I don’t post again, 3 or 4 months from now, I think we can all thank Anthony and A. Beaumont for the idea!

Stopped the print spooler, went to the spool folder (see above), deleted the bad job.
Went back to Printers and Faxes, uninstalled the driver from the print server.
Unplug printer.
Restarted computer.
Went to HP website and download latest driver.
Installed as a seperate driver using the server properties dialog box in P & F.
Plugged in printer, working.

AS A PRECAUTION:
Changed default data type to RAW.
Set ‘Print Directly to Printer’.

Will wait to hear back from Client (hopefully will not!)