The problem was described to me like this:
When you print to the network printer, and want to use the “URGENT” watermark setting, it does not work.
When you print to a locally installed printer, it works.
When I install the printer driver on the Windows Server I specify WinPrint / RAW as the print processor.
When you install it yourself, on your PC, the driver picks its’ default (in this case LMABT54C), and the Watermarks feature works.
So why do we use WinPrint / RAW on servers?
It’s a known quantity. In other words, I know it works (mostly), and more importantly, as it’s a user-mode DLL, it is stable.
I don’t want some crappily written HP or Lexmark DLL* crashing my print server, or Citrix server, thank you.
* – in this instance, it was a Lexmark Universal print driver causing the problem. Given the build quality of the Lexmark printers I’ve seen, I wouldn’t trust their software drivers.