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Flashing alternately mean waste pad full. Reset using SSC utility or Adjusment program/resetter. But, you must replace cartridge before. Turn off printer, unlock carriage lock (left side of carriage at parking position). Move carriage by hand to replacement position. Replace ink tank. Reset using the resetter.
Check status monitor? Black ink not recognized or what? If not recognized, red light just on. But flashes? It's may ink nearly out (low level ink) or printer need service. Check it. using SSC utilty to resolve. Reset protection counter and clear counter overflow.
Basically your printer says that you need to replace the waste ink pads. If this happens for the first time to this printer you can just reset the counter using SSC Service Utility (http://www.ssclg.com/epson.shtml) or if it happened more than once you shoul first replace the ink pads and then reset the counter or the printer may overflow. That's it.
Under each printers there is a pad, a spunch that holds all the wasted ink. This pad is probably full. you should locate where the ink pad is and change it or clean it. By cleaning I mean getting rid of all the ink from the spunch. After cleaning or replacing the pad you shoul run a utility to reset the protection counter. I use to have a all in one epson printer and did the same. I use SSC Service utility. it helps to reset the counter. After that, if that is the problem, your printer should work again.
If both lights are flashing, it means the Waste Ink Pads in your printer are saturated with ink and the waste ink ("protection") counter has exceeded its limit. The Waste Ink Pads should be replaced as soon as possible. You can overcome this problem temporarily by using the SSC utility - download from
and reset the Protection Counter. This will stop the lights flashing and restore normal operation.
However, remember that eventually ink will overflow from the waste ink area and make a dreadful mess, so you must change the waste ink pads before this happens. This requires the disassembly of the printer. A copy of the service manual is available from a number of sellers - just Google "Epson C46 Service Manual". You will often find them for sale very cheaply on E-Bay.
If you decide to have a go at replacing the ink pads yourself, report back and I will provide further help.