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Default Booklet printing problem on HP

I am using the bookfold option in Word 2002 to print a booklet on half letter
paper (5.5"x8.5") so that when folded I get a 4.25" wide by 5.5" tall
booklet. I can print the booklet just fine on my Epson 785 EPX photo
printer. Making no changes to page setup margins, when I try to use my HP
D145 multifunction printer(which conveniently has the double sided printing
capability), I get a very wide inside margin that is much larger than the .5"
inside margin + .2" gutter that I specified. As a result, a lot of my text
gets truncated on the right side of the page. I did not see any printer
settings for the HP that would be causing this. By the way, print preview on
the screen looks fine and does not match the actual printout.

Does anyone know of a solution?