Have you installed the printer on the W2K machine? (you know, double clicked the "Add Printer" icon, etc.)
I think you're right. You need to install the drivers for the printer on the remote computer. And, before Windows xp you needed to "capture" the printer or otherwise select it for use off the list of hardware available for use by the workgroup.
The printer needs to be installed on both computers, the printer needs to be made available for sharing by the host machine, then the printer needs to be selected by the remote computer.