BSOD on new termianl server

[FONT=verdana]Hello, this is my first post and I'm kinda lost at this point. I have a new windows server 2008 standard 32bit terminal server setup. The users log in to run several applications and do their printing. The server blue screens constantly while people are working. I am almost cretin the cause is print driver related. Please help me troubleshoot the minidump. The dump contains two separate days I tried to go live. Thank you for your help![/FONT]

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KERNEL_MODE_EXCEPTION_NOT_HANDLED
Ntkrnlpa.exe
Win32k.sys

Windows Server 2008 is based on XP right? Is XP fully updated to Service pack 3 and beyond? While this looks like a driver issue, ntkrnlpa.exe may point to a hard drive issue. Are there any yellows exclamation points in the device manager?
 
No every thing looks good in device manager. This server is a virtual machine. I am running VMWare ESXi 5. I have several other virtual servers running on this hardware with no issues. And yeah the OS is fully updated.
 
Both minidumps are the same. You say a printer driver issue, why? Did this issue start with a printer driver install or update?
 
I just assumed it was print driver related. The windows installation is fresh and has applications installed. I had a few employees test it with no problems but when I moved everyone in the department to the new server it starting blue screening.
 
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