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It allows you to create variants of the actual printer that only allow specific features or use special settings like pulling from a specific tray as opposed to having to set up different versions of the same driver on a PC with the correct functions. The virtual printer allows that instance to only offer the particular feature(s) you want to offer. It's much more common with Unix and mainframe style systems than with Windows.
I've only seen it used once in an automated environment where a software application would send a print jobs to pull from specific trays.
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