|There are drivers for Epson LX-300 built into XP.|
You have to select them manually in Control Panel - Add New Hardware - manually select Printer, then Epson LX-300, , or in Control Panel - Printers and Faxes - Add a Printer when your printer is connected via a paralledl cable because when it's connected that way the printer is not Plug-n-Play detectable..
In any case, did you check for settings in the Properties for the printer itself ?
Control Panel - Printers and Faxes - RIGHT click on the printer model - Properties.
"I also tried installing the IBM PRO PRINTER II drivers to see if that would make the customization show up"
All older printers have emulations of other printer models you can alterrnately use, but you must use the correct ones, The correct ones are stated in the original printer manual. You may need to set switches on the printer to have it emulate properly - I did on mine (see next) - tha'ts also in it's manual..
Your LX-300 and the IBM Proprinter and Proprinter II are really old models.
I have a Roland 24 pin dot matrix printer my Dad bought new in 1988 and it emulates a Proprinter or a certain Epson model. Your LX-300 is probably at least that old.
Why are you even using such an old model ?
You can probably buy a much newer model. I know the new ones are now expensive, but there are lots of used ones out there, in good shape, for a reasonable price, that are much newer than the LX-300.
Until inkjet / bubblejet printers came out, they were the best printers other than laser printers and most people were using one.
The Proprinter II emulation may be too new for the LX-300.
"By skipping I mean that it prints the first form, then skips a form, then prints the second , then skips, then prints, etc. The program I am printing from has some options to adjust the margin, however these adjustments did not fix the issue."
As recall when I had a problem like that with the Roland printer it was related to the default max length of a page in the prgram you're using being longer than the max space for the particular paper size on which it could be printed on the printer model's printing area by a little bit - the latter should be shown in the manual Try something such as decreasing the max page length setting a bit, in the program you're using to print with.