"I understand that printing locally from a remote session is possible with Remote Desktop and Terminal Services. I am however not sure if this is possible with Citrix. Could some please verify and how is that accomplished?"
I'm not sure what you mean...printing to the printer local to your citrix server? or printing to the printer at your remote location?
either one is possible, you just have to select the printer from the "printers and faxes" menu. if it's installed on the LAN at your server location then you just need to make sure it's shared, installed on the server, and you have permissions to use it.
if you're trying to use the printer on your remote computer, just make sure the drivers are mapped and maybe that you've selected to auto-create you DEFAULT PRINTER ONLY. the event viewer will tell you anything about the auto-creation process (good or bad) each time you sign on and your printer gets auto-created.
if you don't set it to default only, every printer on every client that connects will be auto-created. although this isn't that bad, it WILL give you a long list or printers to choose from. I had to sort through a list of 50-60 duplicate printers because my office's users had all of our LAN's printers installed.
hope that helps.