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Could you look in the manual and see what that alarm is for? It has been a while since I have seen a microline printer. Mostly businesses still use that kind of printer.
Id say the ribbon might be out.
Your printhead is in correctly but not aligned, Please loosen the 2 screws that holds the printhead.Remove ribbon(all this while the printer is powered off) Now look on the right side there is a lever that makes the printer go closer to the ribbon ,move the lever to number 9 and move the head over to the left side of the printer.push the head forward slightly towards the black roller and tighten the 2 screws again ,install the ribbon and move the blue lever to 1 and try printing again.
Hope this helps.Dezzi