I have two Mac's with 10.7.3 and PS CS5 print dialog is working fine for both. One was updated with the .3 Delta while the other was updated via the .3 Combo, so I don't think the method of update is your cause.
I suggest you first look at resetting your printing system. This will remove all printers and scanners from the Mac but not the supporting drivers, so you will only have to add them back into Print & Scan.
If this doesn't help, then simply download the 10.7.3 Combo update and run the installer.
I have found the solution on an ADOBE forum:
What i got from another thread, is that you have to launch PS while holding down a certain combination of keys (i think it was shift+alt+cmd), and it'll reset your preferences.It worked like a charm.
On the other hand, reinstalling the update has helped me with a very annoying problem: Each time when I attached a file, Mail would lose the cursor and never display it again in the same mail. The new version functions properly.