Using CUPS 1.1.17 to set up the print queue, access the samba share of the print queue by Start -> Run -> \\<printServerName>. Go into Printers and Faxes directory -> right mouse click -> Server Properties-> Advanced tab.
The Spool folder shows 'C:\PRINTERS' which is different than the smb.conf file which is set to 'path = /local/local1/spool/samba'
That value is just hard coded and is really only cosmetic.
You can change in the the source code if you like.
I have never really found a pressing need to worry about it.
Going to mark this one as 'wont fix' unless you found
some problem that is linked to the current value. Or even a
good reason to change it.