Can't add local printer-greyed out

I want to add a local printer, but it's greyed out. I click on Add a printer,
the Add a printer Wizard appears. I need to choose "Local Printer" but that
option is greyed out. Network printer is available.

This happens only when the user is logged in, with her account. When I log
in with an administrator account, then it allows me to add a local printer,
but that local printer only shows up when the admin account is logged in, it
does not show up for the user account.

I'm assuming it's a security setting. What permissions do I need to give
that user, to allow me/her to add a local printer under her account?

It's an IP printer on the network, not really a local printer, but I then
add a TCP/IP port and it works.