I experienced a lot of problems trying to get my Epson 1270 to work correctly when printing from Photoshop. When I connected the printer XP found a 1270 printer driver and set it up to use that driver. I ended up with a very strange print control panel and was unable to get the 1270 to print like I had when using 98SE.
I checked the Epson site and found a 1270 printer driver for XP downloaded the driver and ran the setup, associated with the new driver. Still had the same problem, it appeared XP was tring to use the generic setup even with the other one installed.
Today I left the printer hooked up to the computer, uninstalled both sets of drivers for the Epson 1270, then reinstalled the new XP drivers only. Now works like it should, have full control on how I want to print.
If anyone is going to use a Epson 1270 with XP, get the drivers from Epson site first, also the status monitor updated driver, do not let it install using the drivers that come with XP, you lose a lot of control and it will not print as you expect.