Windows XP printing problem

Since I installed a recent Parallels update, I have been having printer problems. Specifically, when I try to print using the "control P" command or if I pull down print from the File Menu, I get a message that I have no default printer selected even though one is selected. However, if I use the printer icon, I can print. I have one other non MS program that also can't locate the default printer. I am printing to an HP Color LaserJet 2605dn. Also, when I try to print an envelope (MS Word or MS Works), it will now only print as a document with the wrong alignment even though the setup shows the correct format.

Naturally, everything works fine in the Mac side of my Intel iMac desktop. I have downloaded and installed the latest Bonjour software. I have deleted and reinstalled the printer using both the generic/generic method and by selecting HP/LaserJet 2605dn.

Up until a couple of weeks ago, everything worked OK - not perfect because I can't access the duplex printing capability of the printer from Windows in Parallels.