You need a real physical printer (not a PDF printer) on the machine, set as the default for the login used to run the tasks.  There is a task log which prints and this can't be disabled, and any prompt for a file location as output will cause the task process to hang.

It only working for you with Deferred implies a Windows permission problem where the task doesn't have access to the reports directory.

I have access to a physical printer so the permissions are running correctly.  The Network printer is shared.  But the task log still shows an error, (invalid printer).  The only option for printing that does not error out is "Deferred".  Any other ideas?  Thanks so much!

A couple of suggestions on Task Scheduler printing that might be helpful (from Sage Knowledgebase)

Per Knowledgebase Article 78666:

For Sage 100 Advanced or Premium editions:  Make sure the Windows account used to run the Sage 100 service, or used to start the Application (in Application Server Configuration) is a Domain Administrator level account.

For Sage 100 Standard edition:  Make sure the Windows account used to access Sage 100 has full rights to the network printer

You mentioned running from Terminal Server, per Knowledgebase article 82470:
Sage 100 Server must have printer to print log.

Do you have network printers set up on Sage 100 server? 

What is the default Windows printer on that Sage 100 server?