I was having the same problems.  I manually set the IP address, Subnet and Gateway on the printer to match our network, and then was able to install the drivers (only locally).  Now the printer stopped printing.  I can't ping it anymore, but if I use the Dell IP utility, it does see the printer.

I have been on the phone (hold/hang up/disconneted, etc) with Dell Tech Support for the past 2 hours trying to get someone to help.  No one yet

I will keek you posted

Paul

Finally!  We got it installed.  I had gone into Control Panel - Add Printers (Windows XP) before to try this, but I had selected the network option then because it made sense.  After all I was trying to do this for a machine that wasn't directly connected to the printer.  This time, simply for lack of anything else to try, I chose the local option.  When Windows says it cant find any Plug and Play printer, it prompted me for a manual installation.  Click next, select Create a New Port with port type set to Standard TCP/IP ( at least that's our setup).  The rest is easy, direct WIndows to the drivers to be installed from your installation CD when it prompts you, name the printer, select your preferences, bada-boom, you're connected.

But who would have though of choosing the local option over the network option?  And why the heck didn't the network option work in the first place?  Oh well, hope this is helpful to the rest of you in printer Limbo.