Carriage jam

We had the same problem. Our printer hand't jumped a gear, but when we slid the carrige from the right side to the left we discovered a small piece of paper crumpled up against the right inside wall of the printer keeping the carrige from going all the way to the right and causing the error message.

just return the printer to the store...

This can be many things, but inspect the paper path for anything stuck. remove the cartridges with printer off and see if you can manually move the carriage you may need to force it a little but not allot, sometimes it may jump a gear causing this error.
move the carriage away from home position and turn on, the printer should reset the carriage position.

hope this helps