When you use the second method Windows is supposed to copy the correct driver over when it adds the printer, but I have found this doesn't always work particularly when the versions of Windows are different. I tend to take your first approach and install the correct driver on every PC
Re: Network printer sharing
6 years 4 months ago #37886
The second approach tends to be easier to install but the print server PC would be a single point of failure. The first approach is more robust whenever the availability of the print server can not be always ensured but also a bit harder to manage in terms of printer configuration.
Still we use the first method in our campus most the of the time.