Took me a while to find the solution.
PS121v2 does not install well with Windows 8.
TCP/IP method on the forums online also failed (complicated too).
Netgear has its own documentation on it:
1. add printer with tcp/ip port, with just the ip (no fancy prefix nor appends)
2. Then choose Custom Device type where you get to select LPR radio button, then enter PS121v2 as the Queue Name in the LPR Settings section.
3. Install printer driver.
For Windows 7, 64-bit, some says use version 1 of Netgear PS121. Didn't work for me. V2 installed easily before, if I recall right. But this time, on the same machine, it had trouble installing after I tried to reinstall it hoping to get rid of the Paused printing by default problem (I uninstalled Netgear PS121 and removed the networked printer, to my regret). I have much trouble reinstalling. Install progress halted at the end all the time.
Solution:
Remove as much "netgear" related stuff in Regedit. I don't have other netgear product on my system, so everything pertaining to netgear must be PS121 related. I even went into safe-mode to do the regedit, but didn't seem much different - Stuff I wasn't able to remove in normal mode didn't seem to go away in safe-mode either. But didn't matter. After removing as much as I could, I restarted into normal mode and install the PS121v2 again. This time, the installation progress bar concluded with a finish button, although there's an error message saying that the installation did not complete and that I should restart to try installing again. So I followed the instruction and restarted the system in order to install again, same problem, I repeated the procedures again, and finally I see the PS121 icon in the system tray. Great! After that, I manually add my networked printer back using Local existing Port (IP_192.168.1.106P1 Standard TCP/IP port), which was created during the first successful installation.
Update: For my new Corei5 Desktop which runs Win7-64bit.
Installed using ../MFP/Utility64/Setup.exe, since it's 64bit, but before that:
I went to properties of the setup file and made it compatible with Vista. Then run it as Administrator.
When I run some of the app's settings, there was a pop up for password, I use "password".
And now it works.