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I would suspect that the paper path has been changed via the control panel. If you are using continuous paper fed in from the tractor this should be Tractor 1 (unless you have optional tractors).
If the printer shows something like SINGLE on the display, it is for sure that the paper path has been changed.
Disconect the pritner from the computer system, and power the pritner off and ofter 10-15 seconds power the printerback on again.
Take the printer off-line by pressing the Online key
Press the Setup key
Press the key under "Paperway" in the display
Select Tractor 1 (or Tractor 2 if fitted/required)
Press the key under "Set"
If the menu shows as locked power the pritner on holding down SETUP to unlock the menu.