Thank you WDL and bluedog. Your help has solved a 2-month long frustration. Here is how I figured it out for anyone else with the same problem.
1) I needed to figure out that the printer is localtalk, meaning that it runs its network connection through the printer port. Since the tcp/ip connection was running though the eithernet port, I was not reading anything on the localtalk connection thought the printer. Localtalk can only run though the eithernet port since our system is dual platform using an NT server.

2) I changed to the localtalk connection thought the printer port. Bingo the printer is there in the laserwriter 8 chooser panel (recent versions of lw 8 supports the 360). But now the server connection was cut, undesirable for a network printer to say the least.

3) Then I needed to figure out a way for either the printer to be hooked up to the eithernet at the hub (I figure through the localtalk eithernet bridge mentioned by bluedog) or the localtalk bridge software found at apple.com (also mentioned by bluedog). I opted for the software.

4) I loaded the bridge software onto the machine connected to the printer, an lc580 with OS 7.5.5. and I was able to read the printer from all the macs in our building through the Laserwriter 8 chooser. I didn't need to install the bridge onto the imacs with os 8.5, 9.0, or 9.1; it worked without the birdge on the other machines.

5) next step it is to hooked up the printer to the pc on the same table as the lc580 so teh pc's will also be able to use the printer as well. I understand that the lw 360 is able to run while hooked to both platforms at the same time.

I hope this will help anyone else with similar problems.

I really glad to have helped. It took a bit for me to get the configuration I have set up, but works flawlessly once set. The older 'localtalk' only printers are finicky in this respect. Most newer printers or any with an ethernet connection don't have these concerns.

The least expensive method is a direct localtalk connection (using a serial cable) to connect to the com port of a mac with ethernet too, and then using the software 'laserwriter bridge' to provide the path from ethernet print jobs to the printer.

The least cumbersome method is to use a $80-200 localtalk to ethernet bridge in hardware. Its basically a hardwired version of the software and doesn't require a computer to be on in order to pass jobs from localtalk(appletalk) to ethernet.

There is a distinction between localtalk (the cabling system apple used in earlier networking) and ethernet. Appletalk (the protocol used) can be passed over ethernet or the localtalk cabling.

Basically, localtalk and cat5(the cabling used with ethernet networks) are analogous. TCP/IP and Appletalk are both protocols or methods of communication over a connection such as localtalk or ethernet.

There may be better ways to describe networking topology, but that a simplified summary. Understanding the concepts and reasons why things don't work, is just the foundation for solving network problems.

Pleased you ended your frustration - know what it's like.

WDL