Win7 USB Drives and Blinking HP Officjet printer

I just (re)installed Win 7 (Home Prem) after accepting that it would wipe all my files on the Win7 beta I'd been using for months. First my USB drives (Seagate 1.5G & 750Mb)weren't accessible but suddenly they were (Win7 auto update?). But my HP 7310xi printer, connected to the router by a USB cable but using a wireless connection BLINKS and does not function whenever I access either of the USB drives. Click the USB drive and the printer freaks-out. Have 64 Bit HP Slimline (s3620f) Computer < 1 year old. Has anyone had 'blinking' printer-goes-down problems with HP/Win7? Any ideas would be welcome. Thanks!

 

I haven't tried to print to my HP printer since installing Windows 7 since it is only used for gaming, but I'll give it a try.

 

I know that my HP printer prints fine on my win7 box.

Did you install the proper network printer drivers for the printer?