The root cause of issue seems with the printers were having "Smart Installer" (Drivers are integrated on printer
itself with in built memory which will not be removed physically.
Hence it is deteting as "Mass Storage Device" which is showing as nor mal USB drive. But it was not turning as
printer device.
To resolve the issue we need to disable "Smart Install" Feature on printer.
First download Complete drivers from HP site for both Windows XP 32 bit and Windows 32 bit OS.
First start installation of printer drivers on Windows XP 32/Windows 7 32 OS installed system and connect USB cable
when it prompts.After getting successful installation,
You may run SIUtility64.exe or SIUtility.exe utility from CD without installing on XP Machine
Disable "Smart Install" feature from printer by following below steps.
Insert Printer driver CD on PC/Laptop.
Find X64\SIUtility64.exe for 64bit or SIUtility.exe for 32bit on UTIL folder
Click on above exe file.
Then choose "Ddisable smart install on printer" (Now smart installer permanently disabled on printer)
Now disconnect USB cable from XP 32 bit /Windows 7 32bit system,
Start installation with Downloaded Full driver solution
Connect printer with USB cable when it prompts connect.
Now installation should complete without any issue.
Printer should not detected as "Mass Storage Device"