HP UPD Auto Configuration feature returns error

Environment :- SLES10 SP3 OES2SP2, HP UPD 5.4, HP UPD 5.5, iPrint client 5.82

Error :- This command could not be completed because a printer communication error occured

Steps to duplicate :-

1) Upload HP UPD to the DriverStore.
2) Create a iPrint Printer agent and associate the driver uploaded in step 1.
3) Install the printer created in step 2 on workstation running iPrint client 5.82
4) Go to Devices and printers
5) Right click the HP printer we installed in step 3 and click on Printer Properties
6) Click on Device settings
7) Scroll down to  Installable Options
8) For Automatic Configuration choose update now and click OK.