Installing HP 4350 network printer deletes MSDE from registry on workstation

[bguill00]

I have about 10 Windows XP, SP 2 machines that are experiencing a
strange issue. I recently added two new HP LJ 4350dtn printers to the
network. When the 10 workstations with the issue add this printer
something deletes their MSDE registry entries causing the MSDE msi
file to try to repair itself. Randomly throughout the day they
recieve a message that MSDE in installing. They can choose cancel or
they can just ignore it and let it cycle though about 5 or 6 times.
Event viewer is reporting that the HKEY_CURRENT_USER\Software\Microsoft
\Microsoft SQL Server\80\Tools\Service Manager is missing. It also
reports at multiple times that the driver for the HP4350 has been
updated or installed. This is typically right before the MSDE
installation messages reoccur. This does not happen to all
workstations. It is limited to one site and only about 10 of 60
workstations. Each site has new 4350 printers. If I uninstall the
application that used the MSDE piece and reinstall it the registry
entries will return and they will not experience the issue until they
download the driver again. I've tried all available drivers. Has
anyone seen anything like this before? Another note, on the affected
machines after the printer is added it continues to update or downlaod
the driver for some reason. Each time it does this it causes the MSDE
message to reappear.