I checked in Ubuntu 10.04 and 10.10:
Preferences > Default Printer has been removed and system-config-printer now asks if you right-click "Set as default" on a printer if you want to set it as the system-wide or user default printer. The first printer that is added automatically becomes the system-wide default (green check mark icon).
gedit's File > Print selects the user default printer if available and otherwise the system wide default printer.
So I think this solves your problem, therefore closing as Fix Released.
Feel free to reopen if you still see a problem.
I checked in Ubuntu 10.04 and 10.10: config- printer now asks if you right-click "Set as default" on a printer if you want to set it as the system-wide or user default printer. The first printer that is added automatically becomes the system-wide default (green check mark icon).
Preferences > Default Printer has been removed and system-
gedit's File > Print selects the user default printer if available and otherwise the system wide default printer.
So I think this solves your problem, therefore closing as Fix Released.
Feel free to reopen if you still see a problem.