Sorry to hear that you are having a problem with your upgrade to Snow Leopard. Unfortunately, HP has taken several weeks since the OS release to begin to roll out new drivers for their printers. I suspect they are working pretty quickly, and maybe there is a little confusion around those offices and their support site may not have the latest info about some of their drivers.
Then when I add more paper, the orange LED continues blinking and does not restart printing.
Sounds like a physical problem with the printer itself. There is usually a mechanical switch that the paper touches or moves in the printer that tells it that there is paper in the tray. When you put paper in the tray, the switch is moved and warning lights should go out. This is the same for any operating system you run because the warning lights are physically controlled by the printer not the computer. Not much you can do about this with a printer driver for any computer or OS. You might be able to get the printer to re-check the paper status by turning it off and back on. This will probably dump the rest of the unprinted document, but maybe not. Meanwhile, during the printers startup, it does check all of it's sensors.
Also I could not get it to print documents from a 10.5 macbook pro on the network. Bonjour found the printer but it just would not print.
It sounds like you already had problems with the printer even before Snow Leopard. Most of the HP printers I've had to deal with in the last few years have worked well with Bonjour and Bonjour for Windows. Maybe it was a driver issue, but the drivers are provided by HP, not Apple. Upgrading to Snow Leopard to fix a printer issue was pretty brave as SL users with a lot of HP printer models have reported that printers that worked great under Leopard, don't or didn't until they got new drivers for SL.
This is nuts. There should be some consistency in the numbering.
It looks to me like the numbering system is correct. You are getting drivers for your printer by using Software Update that are not being shown on the HP support site for download. 1.0.6 came out in September, but it says it's only good up to OS 10.5. It would be great if their site was a little more up-to-date, but since you get their latest drivers through Software Update, for your printer, it really doesn't matter what the site shows.
You can delete the Library/Printers/HP folder and use the original disc to install the original driver, then use Software Update to get HP's latest version again. If it works, great. If not, then their tech support pages will probably be the best source of information about bugs and fixes.
Good Luck.