Michael, When you say that your laser printer is specified as the "default", is this just within UFT or have you also set the Windows default to that printer?
In Windows 9x or NT, select Start, Settings, Printers, and you should get a list of the printer "installed" on your PC. Right click on the name of the preferred printer and in the pop-up menu, one item is "Set as default". This should have a check mark beside it. If it does not, left click on that line, and then Windows will use that printer as its default. I'm not sure if you will have to tell UFT once more to use this as its default as well.