Someone from HP tech support provided a far easier fix.
Background information: Windows expects the device driver to be a certain size (maximum). Some updates of video drivers (some of nVidia and ATI) are slightly larger than expected. A simply registry entry will resolve the issue in WinXP (the issue doesn’t occur in Vista).
Solution:
This fix solves open/install of Type 1 fonts as well as issues with OpenType fonts.
Do let us know if this fix works for you.