I can confirm that this is still a problem for Edgy with the same solution working (which, frankly, is a terrible solution). When you edit the printer settings you can change the paper and it will stay without making an noticeable difference. This appears to be happening for several people:
http://ubuntuforums.org/showthread.php?p=1604721 -- Always prints A4 paper https://launchpad.net/bugs/46613 -- ubuntu-bugs mailing list ubuntu-bugs@lists.ubuntu.com https://lists.ubuntu.com/mailman/listinfo/ubuntu-bugs