I have finally solved it. Windows 7 decided to revert to the previous network port setting (192.168.0.110) which I set up when the new router defaulted to 192.168.0.1. This resulted in no access to my NAS drive, so I have to change everything back to 192.168.1.1 based net to get access to my drive. Everything was working fine including the printer.
For some reason unknown to mankind, W7 took it upon itself to go back to 192.168.0.1 based network just for the printer

. Corrected that now and all is good in W7. Tried to do the same on my XP lappy and won;t play the game... eventually pressed "Use printer online" and presto its away... The Use Printer Online option wouldn't work before...

(and the printer is mapped separately not through my W7 machine.
Problem solved for now.
Yet another exercise in vocabulary practice finally over.
Al.