DPR-1260, HP All in one 2210, and IE7 (by 2 users)

i just bought the DPR 1260 on reccomendation from someone...
the printer was recognized without issue, but when i tried to scan the scanner would hang.
I updated the firmware to the v1.21 and then one of my XP workstations couldn't print, and when i would go to the web console, there were IE errors all over the place(i can't change languages, no devices were detected, etc). The wierd thing is every other PC on my network was fine. I have tried all four firmwares with a varying degree of success. I am at 1.12 now, so my primary workstation could print...but i still can't scan from it..I get "low memory please try again later" errors.

Any thoughts? this is set up wired...wireless is off as i already have a wireless network setup.