I installed the HP Print driver that came with the printer in the
virtual machine and that is where I am adjusting the print settings.
Maybe that's it...
Fusion handles all the drivers... My advice
would be to get the printer working in OS X (if it isn't already,
assuming it's supported), then use Fusion's Settings for that specific VM to enable that printer... the
features of the driver from Mac should follow down to the virtual
machine.