If you are using a TS then you need a printer that supplies TS-compatible drivers; and it doesn't appear that that consumer grade ink-jet for printing photos is intended (nor provide compatible drivers) for terminal server usage (it's pretty much guaranteed to be a 'host-based' printer/drive, which almost never work with TS, and almost never have a 'universal' type driver).
The reason the LaserJets could get away with the older LJ4 driver was/is because decent LaserJets speak common printer languages like PCL and PostScript, so the driver just sends the print job in one of those, and the printer processes the commands into a print-out. Host-based printers do this processing at the 'host' (your computer) and send it to the printer as a processed print-out in some proprietary format.
In general, if MS doesn't provide a driver via Windows Update, and you've tried the latest from Epson, you may be (probably are) out of luck getting it to work across the terminal server.
If you are using Server 2008R2 on the TS, then you may be able to use it with Easy Print, if it's implemented.
We'll need more clarification on the actual setup to be able to offer better suggestions.