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You have to check which ribbons are loaded.
Depending on that you have to select the appropriate mode in the driver else it'll keep giving this message.
Y = yellow
M = magenta
C = cyan
K = black
O = overlay
May be you don't have overlay loaded
Enter the Menu system on the front panel, cycle around until you find calibration. Press the select button here and follow the instructions, when it asks for you remove ribbon remove it, it will ask to load the backing. Remove a label from the backing and let it do its thing, eventually it will ask you to load all. Re-install all the media and it will calibrate, after this it will fix your error. If it doesn't there will be a sensor that has failed.
Make sure the ribbon sensor is in the proper position and that there is nothing covering it, like a piece of label that came off and got stuck to the sensor. Here is a picture of where the sensor is located. Did you make sure you put the ribbon sensor plate back in? If not you will get this message.
Make sure the Print Method is correctly set! Although I exclusively use Thermal-Transfer (ribbon is loaded along with label stock) my 140xIII had Print Method set to Direct-Thermal and printed labels just fine. The only problem I could see was that the Ribbon In warning would not go away. After changing the Print Method the warning went away and printing continues as before
It's very possible you are not installing the ribbon properly. When loading a new ribbon on a Monarch printer, you must save the plastic ribbon core (it's butter yellow in color) from the previous roll of ribbon. The core is what the ribbon is wound up on. Do not throw away this plastic core - you need it for the next roll of ribbon you load! You have to move this now empty core from the back ribbon spindle and slide it on the front ribbon spindle. You then load the new ribbon on the back spindle and attach the ribbon end to the empty plastic ribbon core on the front spindle. You CAN NOT just tape the ribbon to the front spindle. You must have an empty ribbon core to attach the new ribbon to. The printer will give a 754 error unless you have two plastic cores on the two spindles. It can also give a 754 error if the ribbon is not loaded properly, and also if you have a bad motherboard. There are no ribbon sensors, so that's never going to be a problem...
Had the same problem with a ZM400. As stated in the User manual (can be downloaded http://www.zebra.com/id/zebra/na/en/index/resource_library/manuals.results.html?FRRBarcodePrinters=6882), warning "Ribbon in" is usually caused by the wrong printing method (thermal direct instead of thermal transfer [which should be selected for ribbbons]). My error disappeared after choosing "thermal transfer" directly on the printer. For network printers this needs to be set by an admin in the network settings for the the printer to solve the problem permanently.