ms960
I've had the same issue trying to install a Brother MFC 7420.
I have 2 printers connected to the 1260; Canon i9900 and the Brother. The Canon installed fine using the setup from the Dlink (using the existing, preinstalled driver.)
Trying to install on 2 computers; XP Pro x64, XP Pro x86.
Using the Dlink setup, I WAS able to get the Brother installed on the x86 version by plopping the original Brother Driver CD in the drive and pointing setup there. (oh, Win7, you prolly don't have a cd for that.)
The 1260 setup keeps getting hung up tho when I point it to downloaded drivers. It will NOT accept those drivers that are downloaded directly from Brother...dammit.
Do you have an original driver disk that you can point dlink setup to? (oh, Win7...just reread your post.)
On the laptop that is NOT working...has that printer ever been physically connected to it? If not, try physically connecting that printer to it, print a test page. Move the printer back to the dlink and go through teh setup again. Perhaps setup will THEN see the existing driver has already been installed.
Good luck!