Pushing the continue button and getting a test page just lets you know the printer is functional. This is a test without having the computer involved. If you can print a test page from the print driver, this lets you know that there is communication between the computer and the printer.
Uninstall your current drivers for the 1700, there are 2 places to look for the drivers, one would be in your all programs list, Dell Printer, uninstall, the other would be in control panel, programs and features, look for the dell printer software there. Once you have this uninstalled, go to device manager while the printer is still attached to your computer. In device manger look for the icon that represents the printer, right click it and then click uninstall. Now detach your printer, close device manager, restart your computer. Next you will boot back to the desktop, attach your printer, if windows recognizes and tries to install the printer, stop/cancel it. Install the printer drivers from the file you downloaded from the Dell support site. Now try printing from your application.
Dell's support site and download the most recent Vista drivers. Here is the link for Vista driver http://support.dell.com/support/downloads/driverslist.aspx?os=WLH&osl=EN&catid=-1&impid=-1&servicetag=&SystemID=PRN_LSR_1700N&hidos=WW1&hidlang=en&TabIndex