Be sure to use the default name for your Utilities folder in 10.3 Panther. Otherwise the new Print Setup Utility will not work as expected. I experienced the same odd behaviour on two machines which had freshly been updated from 10.2 to 10.3: Print Setup Utility would launch and let me create new printers, but not open any print job window or create desktop printers.
After unsuccessfully trying the usual remedies, I found out that Print Setup Utility relies on the default name /Applications -> Utilities for the folder it resides in. On both machines, I had renamed this folder to " Utilities" (with a leading blank) to have it on top in my /Applications folder. I deleted that blank, and everything works just fine.
Mac OS X Hints
http://hints.macworld.com/article.php?story=20031031152525373