Turn off Windows Automatic Update for now.
After you do the restore to factory state, what does Device Manager look like? I would expect it would not have any yellow marks and all devices should be working fine, so do not update any device drivers.
I couldn't tell what service pack you have, so I would recommend you download and save the offline installer for SP1 and SP2 (need to install SP1 before you can install SP2).
Windows Vista Service Pack 1 Five Language Standalone (KB936330) - 434.5MB
Windows Server 2008 Service Pack 2 and Windows Vista Service Pack 2 - Five Language Standalone (KB948465) - 348.3MB
It might be a good idea to copy them to a CD or put them both on a DVD in case you need to do this again. Once you have them, just double click on the .exe and it will install. I prefer this to installing them via Windows Update.
Once you have both of them installed, go to Windows Update and see what updates it says you need. Don't enable Windows Automatic Update yet.
DO NOT download or install any device driver updates yet.
This would be an excellent place to do a full image backup. If you don't have an external hard drive, I would strongly urge you to get one. Some come with backup software but I've not been impressed with the few I've seen. You would be much better off with Acronis True Image ($$$) or the free Macrium Reflect.
Once that is done, if the computer is still running okay, then you can try updating device drivers if you feel it's necessary. Remember the old adage,
If it ain't broke, don't fix it.
If everything is still working okay, then you can try the printer again. What is the make and model number of the printer? Have you tried downloading the latest driver for it from the manufacturers web site and using that instead of the CD that came with it?
Once all is working correctly, do another full image backup. Now set Automatic Update to
Notify but not download or install.