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According to the user's manual this message indicates a problem with the ribbon sensor. As a test, set the unit for thermal direct printing and attempt to print a barcode. You will not see the code if yoiu are expecting thermal transfer, but the paper/label should feed like it is printing. That will indicate that the printer is functioning. At this point, the sensor needs to be replaced.
Have you checked for minute folds in your ribbon? Once you get a fold in the ribbon, no matter how small, you may have to manually feed several feet of ribbon through to get rid of the ripple. We have had similar problems in the past with inexperienced operators installing new ribbons.
Make sure that the ribbon is correctly loaded in the machine. Here is what to look for:
On the back side of the print block, the ribbon must pass between the two parts of the ribbon sensor. The upper sensor is located on the back of the print block itself, while the lower sensor is located on the black plastic arm that extends from the main printer wall.