System time is basically the clock. Make sure the clock on both machines is within 5 minutes of each other.
It should be extremely simple but there's a lots of things that get in the way of it. On Windows 7 and above, you can set a homegroup which would have made things easier, but not to worry as I prefer the conventional way you're trying to do.
I am not familiar with any "known but unable to connect" error message, could you tell what the exact error message was?
Have you actually shared the printer by going into Start > printers and faxes > right click the printer > properties > tick "Share this printer".
Have you run the home network setup wizard on the XP machine?
Is the workgroup name the same on both machines?
In Windows 8, on the desktop, type "network", and go to "Network", this should take you to control panel on the desktop, is the XP machine listed there?
Do you have any 3rd party firewalls on the machines? Disable them temporarily and try again...
Zen 8000 Pro