Problems with Epson Printer

I was asked to help with a Mac Laptop. It's connected to a Epson C82 printer. When my friend tries to print out of Quicken, Text Edit or Apple Works, the printer works fine. As soon as we try to print out of Photoshop or Microsoft Word, after clicking the "Print" button, the window shows just a Laserwriter300 icon. This printer isn't even installed. Besides that Word 98, makes strange things. If I go into page setup, a print menu shows up, if I try to draw a table, the margins menu shows up. Operating system is OS 10.3.5. Any idea, what's wrong? Thanks for helping me here.
Herbert

have you tried repairing permissions? also, have you recently installed any new software or hardware on this computer?