printer connection refused on windows 7

Hi, I've searched lots of forums and on here for the answer to this problem but for some reason none of the solutions are working. So here's my problem:

I have a Windows 7 PC downstairs which is connected to a Lexmark X3470 printer which I want to use on my MBP across our home network. The printer is already set to be shared across the network. I couldn't install the drivers for the printer by downloading them so I had to plug the printer into my MBP via USB and it automatically downloaded the software and drivers. I added the printer on my MBP by going to:

1. System Preferences
2. Print & Scan
3. Add
4. Advanced
5. Type, I went to Windows printer via spoolss
6. For the URL I put: smb://MYWORKGROUP/MYPCNAME/PRINTERNAME
7. I named the printer and left Location blank
8. I clicked on the drop down for Choose a Driver or Printer Model
9. Select Printer Software
10. Clicked on Lexmark 3400 Series
11. Add

It then says Setting up software, setting up devices and then I can see the printer on my list of Printers.(see below)

When I try to print, the "workgroup" printer is already selected so I just click on Print. It doesn't print at all so I check the printer queue and it looks like this:

So I click on Resume and it says, Connecting to printer, Connection refused. I thought that I could perhaps change the URL so that it's shorter, so smb://MYPCNAME/PRINTERNAME and when I clicked on Print again, a pop up appeared asking me to enter name and password for the printer "MYPCNAME" so I clicked Registered User, entered the name I use to logon to Windows and my password, then clicked OK. This time is says Connecting, Connected to printer, Printing, Sending print data. But then it stops and says There is a problem communicating with the printer.

I have no idea what to do next. Please help!