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There is an interlock that prevents your shredder from operating without the bin in place. Something may be stuck inside, preventing the bin from closing the interlock. There also could be a shred of paper preventing operation.
Here is some general advice. Shredders have an interlock to be sure they don't run while the basket is not in place. They don't want you holding the head unit and it starts running and shreds your fingers. So you need to look for the switch that tells the head unit that it is in place over the basket. I'm guessing here but it might be something like a little plastic protrusion that pushes into the head unit to activate a swith. It is possible that the little plastic piece is broken and is not activating the head unit. That would explain why the display thinks that the basket is ajar or misaligned. BE CAREFUL if you tinker with the interlock and be sure it is unplugged!! That is an ORDER!
Try pouring some shredder oil into the throat where you normally insert the paper and run the machine in reverse.Put machine back into ready condition.
Put a piece of paper in the throat just enough so the machine should run but not all the way in so that the cutting mechanism catches the paper...all you want to do is make the machine run forwards but not actually be feeding in any paper.
If it wont even run in the forward direction you may have a pcb prob...give Royal a call at 1-800-524-0799 for parts assistance.
Make sure that the shredder is locked down in its case by pushing down on all 4 corners.
Since the basket slides forward to empty it, I would think the safety switch is located in the front but not positive since I don't have a unit right in front of me.
Check to see if you see a slot in the top part of the shredder unit. Usually the basket has a piece of plastic that will line up with the slot when the basket is in place (Safety switch) so that the top part of the shredder knows that the basket is in place.
Look around with a flashlight, If you are going to feel around with your hand, PLEASE MAKE SURE YOU UNPLUG the shredder just to be safe.