If the printer is printing fine with other applications then the problem is most likely with Picasa
Try this: from the drop down menu in Picasa, click on Tools/Options/Printing and change the Printer Quality Setting to Compatible Mode rather than High Quality Mode
It is currently set at Compatible (half res)
Also, make sure the Printer button on the Picasa screen is set to the right printer.
And Resampler quality - General (Lanczos-3)
Richard, You're the Man! It was trying to print from Artisan when I have XP-800
Great and thanks!
Now printing from Picasa and the colors look correct, although it does take some time to come out.
I'm going to try one more
Perfect! Thanks Richard. I was on the phone with an Epson tech rep for about an hour after which she said they'll send me a refurbished printer to replace the "defective" one. She never once said be sure the photo editor printer button exactly matched the printer model. Thanks for your common sense and swift reaction.
You're welcome, glad its fixed, all the best.