No event logs regarding spooler or printers. There are two events that recur for the FAX but not when the error is thrown, they just seem to occur every 30min-1hr. Pasted below.
Event Type: Warning
Event Source: Microsoft Fax
Event Category: Initialization/Termination
Event ID: 32068
Date: 7/9/2014
Time: 10:55:24 AM
User: N/A
Computer: KIP_SCAN
Description:
The outgoing routing rule is not valid because it cannot find a valid device. The outgoing faxes that use this rule will not be routed. Verify that the targeted device or devices (if routed to a group of devices) is connected and installed correctly, and turned on. If routed to a group, verify that the group is configured correctly. Country/region code: '*' Area code: '*'
For more information, see Help and Support Center at
http://go.microsoft.com/fwlink/events.asp.
Event Type: Warning
Event Source: Microsoft Fax
Event Category: Initialization/Termination
Event ID: 32026
Date: 7/9/2014
Time: 10:55:24 AM
User: N/A
Computer: KIP_SCAN
Description:
Fax Service failed to initialize any assigned fax devices (virtual or TAPI). No faxes can be sent or received until a fax device is installed.
For more information, see Help and Support Center at
http://go.microsoft.com/fwlink/events.asp.
They do not use a fax service or machine attached to the computer so this might be irrelevant but I know the spooler and fax services work together so it could create a conflict. I disabled the fax service all together and it still throws the error of "Operation could not be completed" when trying to add a printer.