Printing using various trays

This fault code isn't specific to one location/function on your machine, however, I believe it is directly related to your paper trays. Other fault codes begining with 007-??? state a tray sensor error, misfed media in a tray etc...
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If you're trying to print to a specific tray and it won't print giving this error, you may want to try printing using a different tray. It is entirely possible you have some jammed up paper in the paper path and this will stop all trays from printing.
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Potential solution:
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Ensure you don't have any paper jams related to your paper path and trays, herre is a link that provides you all iinstructions to clear any paper jam on your device http://www.support.xerox.com/support/workcentre-7328-7335-7345-7346/support/enus.html?associatedProduct=workcentre-7328-35-45-46-built-in-controller

NOTE: The above link is a support knowledgebase and you can search on any problem you may have with your product by typing the natural language query in the search field, paper jam, can't print, scan fails transferiing etc...

Once you have determined there isn't a paper jam or if so gently remove any misfed paper.Reboot the device PO/PO power off/power on.
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If the print jobs fail again, check your job status and see if there is any info listed for your print job, could be a media mismatch.
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Try printing to another paper tray, if your job is calling for paper from tray 3 try using tray 4 or tray 5 etc..
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I have provided a generic response to this question and kind of throwing ideas out there, if you could provide additional information I may be able to give a better solution.
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Check the details of your job in the job status list?
A lot of times the machine will provide good direction on potential issues with a print job.
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Are you trying to print on a custom paper size?
If you tell the print driver to print to tray 3 and you have 8.5X11 loaded in tray 3 and your print job from ypour PC is actually 8.5X14 then the job will not print simply put the media has to match the job.

I hope this helps.

Put more paper in the Manual Feed tray to allow it to continue or change the settings to bypass Manual Feed Options.

The user cannot select a paper tray for a print job from within an application. It is also not possible to configure a default paper tray in the Document Defaults, Printing Preferences, Printing Defaults driver options.
This problem may be experienced with an HP PCL5e, PCL5c, or PCL6 LaserJet printer driver on any of the following Operating Systems:

• Windows NT 4.0
• Windows 2000
• Windows XP/.NET

Typical symptoms of this issues include:

• Paper tray selection grayed out.
• Cannot select paper tray, only size and type.
• Not possible to select tray.

SOLUTION: Perform the following steps to clear the NT Forms configuration.

1. Go to the Printers folder by clicking Start , Settings , and Printers .
   
2. Right-click the printer and go to Properties .
   
3. Go to the NT Forms tab.
   
4. Click the Clear All button.
   
5. To save and exit, click the OK button.
   

SUMMARY: This is expected printer driver behavior. The NT Forms feature allows a user or system administrator to configure a so-called "form-to-tray assignment" for the printer. When this feature is enabled it is not possible to select a specific paper tray for a print job, or to set it as default, because the system is aware of the specific paper size and type loaded in the various printer trays, which makes the source selection redundant. Some applications or environments may require a "form-to-tray assignment" in order to take advantage of certain features. For instance, in an Active Directory environment, this feature has to be enabled for the operating system to be able to report the available paper sizes in the printer to the Active Directory

buy a new one

check the paper type and the paper size from the printer menu, if it is ok then you will try to check the paper sensor on tray 2

Turn the printer off and unplug the printer cable from both ends (printer and computer ) and cancel the documents from the printer list.

You can do one or a nother thing. You can change the paper size in paper tray 3 to Legal size or you can go into the user settings, under addtional funcation and choose, that tray 3 will not daisy chain when tray 2 is empty or you can make tray 3 not to be able to print too.

If this is the first time you have seen this error, do the following:

1. Power off the printer.
2. Remove all installed paper trays.
3. Make sure the paper is loaded correctly in each tray. If it is not, reload the paper into that tray.
4. Look up into the printer where the paper tray slides in and out. Check the feed (autocompensator) assembly for any damage.
5. If everything is fine, reinstall the tray and power on the printer.
6. Try printing a few print jobs.
7. If the error does not return, continue using the printer as before. Keep an eye on it for the next few days. If the error does not return, it may have been an isolated incident.
8. If the error returns just as soon as you power on the printer or when you try to print again, you will need to find out which paper tray/paper source is causing the problem.

• If the printer has only the one integrated paper tray, the problem will be with either the tray 1 pick arm/autocompensator assembly or the printer's engine/system board.
  
• If the printer has more than one paper tray installed, try printing from each paper tray one at a time. The best way to do this is to have all of the paper trays empty and then proceed as follows:
  
1. Put paper in tray 1 only.
2. Print from tray 1.
3. If tray 1 works fine, empty tray 1 and put paper in tray 2 and so on until you encounter the error message.
4. If you receive the error when printing from one particular tray, power off the printer to clear the error.
5. Power the printer back on.
6. Skip the faulty paper feed slot and move on to the next one (if another one is present). If you can print from all but one of the paper trays, this is the source of the problem.
   
   If you have extra paper trays/drawer units installed and the error occurs from only one particular source, there are some things you can do as a temporary fix.
   
• If the error is occurring from an OPTIONAL paper drawer/source, power off the printer and remove the defective drawer from the printer. You will then need to set up the printer to print from a different tray. For information on removing an optional drawer, click here.
• If the error is occurring from the integrated paper tray (tray 1) AND you have optional paper trays installed, take all of the paper out of tray 1 but leave tray 1 installed. Set up the printer to print from one of the other paper tray sources (tray 2, tray 3, multi-purpose feeder, etc.).
7. And if your getting the same error then you need to get it serviced...
   

refer to this link

http://support.lexmark.com/perl/support/support.cgi


> Tray Selection Settings for Documents Created in Windows 9x Are Lost in Windows NT/2000 > Paper Is Jamming Right Out of the Paper Tray: Check the Position of the Side Paper Guide on the Tray > How to Set Up and Use the Tray Linking Feature on a Lexmark T52x, T62x, or T63x Series Printer ('x' = any number)