Thank you very much.
I was selecting "Connect to this printer" option (second option) and browse through the network and select the printer - THIS DID NOT WORK.
I selected "Connect to a printer on the Internet or on a home or office work" option (third option) and enter:
This allowed me to use the epson11326.exe drivers.
I decided to install my laser printer (Brother HL5140) this way too and it's also working great from the XP machine.
CUPS did not recognize any drivers for Brother, therefore I still can't use it from my linux machines.