PROBLEM:
Error: Windows Presentation Foundation Terminal Server Print W has encountered a problem and needs to close. We are sorry for the inconvenience.
When connecting Remote desktop from a Windows XP machine on to Windows Server 2008, and trying to print on a redirected printer, the print comes out fine but the error mentioned in the subject pops up. Microsoft suggests installing ".Net framework 3 with Sp1" and updating the file Tswpfwrp.exe. The .Net fix did not solve the problem for any computer in my organization, updating the Tswpfwrp.exe file did.
RESOLUTION:
1. Copy the file Tswpfwrp.exe from any Windows Vista or Windows 7 machine located in System32 folder
2. Paste the file in System32 folder of the windows XP machine.
Connecting to remote desktop and printing should now work without error.