Not sure if this may help anyone, but this is true for our environment:

Server : NW65 SP8
iPrint patches : 8b
Client : Win XP SP3
iPrint client : 5.32

When trying to install a printer whose name contains more than 26 characters and the latest HP UPD associated, the client's print spooler crashes at the end of the install. After restarting the spooler, the printer seems to work OK. Most of our printer names contain more than this number of characters, so its a bit of an issue.
We use the "ShortInstallName = BLAHBLAH" in our iprint.ini file. That short name has 8 characters. The short name isn't BLAHBLAH :-)
Keeping the number of characters in the printer name below 27 allows the printer/driver install to complete without a spooler crash.
Created a test NDPSM earlier where the ShortInstallName had 7 characters and that allowed printers to install without error having names up to 27 characters, so it may be that characters in printer name + characters in ShortInstallName need to be less than 35?

I've also tried this using iPrint client 5.40 and the 8c patch on Netware with the same results.