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The shredder probably has some kind of switch or sensor that detects that the bin is in its correct installed position. The interlock may be broken or blocked by paper shreds. An inspection inside the bin recess may reveal the cause so that it can be corrected.
Are the shredder blades going around? most shredders have guides that guide the paper between to shredder gears or teeth. these guides are usually made of plastic and breake. First step is to see if the shredder gears or teeth ar going around.....
You wil need to Have the shredding head rebuilt or replaced. and or a new machine. A new head is very expensive. Here is the number for fellows 800-955-0959. Check on parts if they are still available. Hope this helps your friendly service tech (colorado).
Heres a few sites that have gears and parts another that has manuals you may have to call or email as not all parts are listed on website http://www.compax.com/shredders/parts.html http://wheelermachines.com/manufacturer.html http://www.manualsonline.com/ex/thread/view/idThread/1735067