This post started with a working Xerox printer in XP , I will assume 32bit since chgoman did not state 64bit so your issue is different than the initial post.
However, since the failures you see are also in the application, this typically indicates memory corruption by the UI components of the driver. If you can use a driver that's included in Windows 7 for your device (and it fails), then I can pass on the issue
to the HP print driver group here at Microsoft. If the driver is not included in Windows 7, then I can bounce the issue off the HP group but they don't develop or test any drivers from HP.com and they will just forward to Boise to find out if it's a known
issue.
If you have a Windows Error Report file named report.wer for the application or splwow64 process under \programdata\microsoft\windows\wer\reportqueue send the contents back. This will hopefully point to the modual name.
If you installed the newer HP driver without first removing the old one (delete printer, delete driver), then you can have compatibilty failures with some HP drivers.
Alan Morris Windows Printing Team Search the Microsoft Knowledge Base here: http://support.microsoft.com/search/Default.aspx?adv=1