This little gem of a process was brought to you by the brilliant engineers at Lexmark. It's run by default when you install the Lexmark and Dell printer drivers (as of this writing, Lexmark makes Dell printers). It insidiously sits in the background and binds to TCP port 1025 in case you'd ever want to set up print services over a windows network. There is no way to disable it to listen for incoming connections, and there is no obvious way to disable it from starting up. Frankly, I don't like mysterious server processes running on my machine, because even if it has no known remotely exploitable vulnerabilities there is always a risk of one being found in the future. Plus, this has been the source of agony for people that have complained loudly on message boards of things like not being able to boot up or having mysterious Ethernet card problems.
Removing this requires a little effort, but is worth it in my opinion. Since the driver automatically loads this program, you can't monkey around in the windows registry to disable it. Instead, find the lexpps.exe file on your system and give it a new extension. I found it hiding in my c:\winnt\system32 directory, but when in doubt use the search feature. Ta-da, no irritating messages from your firewall and you get ~800kb of memory back. I don't share my printers and I've noticed no adverse side effects, but as always YMMV.
On the other hand, if you do share printers and are having problems with this, there is a workaround. First, remove lexpps.exe as instructed above. Then, install the printer on the remote machine as you would with a local printer and specify the printer to print to a network port under Control Panel->Printers->Your Printer->Properties->Ports tab (under Win2k). Set up the printer on the other end and you should be good. I've never done this though, so don't ask me for clarifications and if you find a better way, I'll post it here.