Windows 7 automatic driver installation for printers requires that the user have Administrative privileges.
This is problematic if you have lots of users and need to centrally deploy new printers/drivers.
To disable this security feature create the following GPO:
Computer Configuration\Policies\Administrative Templates\Printers
Disable "Point and Print Restrictions"
Now link this GPO where appropriate.
Related Issues
If you're still being prompted for driver installation (after KB316912) its because some of the drivers installed on the print server are not "Packaged Drivers". You can confirm this by going to Printer Management, selecting "Drivers" on the left, and then sorting the "Packaged" column. If any of your drivers have Packaged = false, then you will get an install prompt on workstations. The workaround is to edit:
HKLM\System\CurrentControlSet\Control\Print\Enviroments\Windowsx64\Drivers\...\Driver Name\PrinterDriverAttributes REG_DWORD value = 1
the new value is based on the existing value + 1. For example, if the existing value = 4, then the new value = 5.
Reboot the print server for the registry changes to take effect, and workstations should be able to install drivers without being prompted. The "Packaged" column should show 'true' for the drivers you make reg changes to.
Reference
http://technet.microsoft.com/en-us/library/cc753269.aspx#BKMK_GPLimitServers