what this is all going to do is make sure when you turn the printers on and off they don't lose the IP address assigned to them i.e Static IP. so you know that for instance the hp laserjet is 192.168.0.200 and can go to any pc and connect to that ip.
when you set the computers to use a local ip port it just basically means setting the port to the printers specific IP address. look her on how to configure the pcs:
http://www.anzio.com/support/documentation/printwiz/Setting%20up%20a%20localhost%20printer%20with%20Print%20Wizard.htmthis site has nice pics of the wizard. some minor differences, instead of using localhost like in the link use the printers ip address you set. also the driver you select is the one for the printer at that ip address. once this is all setup you should be able to try a test page from each workstation to see if they can print. let me know how you make out.