Well I'm honestly not sure what I did, but it's now working. I deleted the PrintServiceOperational Connector from the node and recreated it.
I'm not sure why this started working when I did this because I had done this in the past and every time it was left with it's default settings including this time.
So that does answer my previous question hehe, that yes LEM 6.1 will read the Printer Logs from "Applications and Services Logs -> Microsoft-Windows-PrintService/Operational"