Hi Michael
The cupslpr.exe needs to be replaced by copying the lpr.exe as mentioned previously. It will not help with importing ppds but it may help with the output from e.exe as the output from the OS/2 printer is sent through cupslpr.exe to the cups printer.
I must admit immediately that I am not any sort of ppd expert. However, I do see a problem with the hp-officejet_pro_8740-ps.ppd file - the Language Encoding is incorrect, should be OS2-850.
I suspect you may have gone about creating a printer slightly wrong. I think you used the cups browser interface to create a cups printer and then tried using the Install Printer app and gave it the ppd file.
You should have used the Install Printer for the whole process as it will
1] create the cups printer
2] pickup a copy of the ppd file
3] clean and encode the ppd file
4] add the ppd file to the psprint.drv
5] create the os/2 printer using the just created driver.
It may be worth starting over and seeing if you get better results.
Added shortly after posting: Earlier in this discussion Alex stated that updated versions of the Install Printer/Print Manager are available here
http://www.altsan.org/os2/printing/index.htmlRegards
Pete