I pulled my hair out with this the first week I got my Mac. Everyone kept telling me to open the paper type/quality option, but it just wasn't there. I had the correct driver, but didn't seem to have all the options everyone else had.
I was trying to print to a D-Link print server that is part of my wireless network. Basically you tell the Mac to print to an IP address instead of via USB. On a PC it works great. On the Mac it also works, however, you lose the options of printing in draft, greyscale instead of color, etc.
When I took the print server out of the equation and plugged in via USB, then paper type/quality menu appeared. Turns out, if you print to an IP address, you simply can't adjust the settings. I did several Google searches and found a lot of other people who ran into this same issue. That may be how I actually came across this forum.
I guess this is way longwinded way of asking, are you connecting to the printer via USB?