My MacBook Air prints everything well with Epson Stylus TX420W all-in-one printer and has all Epson drivers up to date through Software update. After upgraded to OSX Mountain Lion and print document, it show "Looking up printer", stops working with 'Filter' failed error message and no response. Try reseting the printing system, removing and re-installing but it still won't print. Then I connect my Epson Stylus RX680 directly via USB works well. Check error in Console is this "(/Library/Printers/EPSON/InkjetPrinter2/Filter/rastertoescpII.app/Contents/MacOS /rastertoescpII) stopped with status 206 (Interface output queue is full)" reproduce the error, and the printer works.
You can also go to System Preferences / Printers, and delete the printer. click Add printer, and select one with ip address from the list. Fixed the issues.