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When you flip the main cover up, and flip the CD/DVD tray down, look at the cartridge color guide label (the colored dots). See the LIGHT CYAN dot? Directly across from that dot around underneath the gray cover is supposed to be a little plastic fin. That fin pushes the sensor switch in the CD/DVD tray to let the printer know if it is open or closed. If it breaks off, then the printer always thinks the tray is open. If it's broken off, you will have to either stick a toothpick or something into the switch, or glue a new thin piece of plastic in its place.
It sounds that there is a possible hardware failure concerning CD/DVD guide cover. We can try this to resolved that issue:
1. Turn off the printer.
2. Close & open the CD/DVD guide cover for three times and make sure that the CD/DVD tray is not inserted.
3. Close CD/DVD guide, Turn the printer on. If printer is ready, press the maintenance button.
4. Try printing again.
If the above step wont resolved that issue your printer may need to send to a nearest Epson Authorized Service Center.
Sorry a little late only just read your problem. The location is not the bottom tray feeder but the disk tray. In settings change your media type to "Printable Disk" the paper scource should automatically change to "Disk Tray" and hopefully every thing will work OK.