It would appear that Windows is applying an artificial 64kB limit.
I looked at the device driver setting in Windows Device Manger. The driver is hplto.sys and the maximum buffer size is set to 16MB not 64kB.I'll dig to try to find how to override this.
I've opened a thread on HP's support forums to see what they have to say ...
What IOCTL are you using to get that MaxTransferLenght value?
Dave