I had the same problem - to fix it, I disabled "Enable Bi-Directional Support" under the printer's properties (in windows, right click on the printer in "Printers and Faxes", go down to properties).
Worked like a charm.
Visit this link and follow setup instructions.. I found this worked for me
There are serval possible fixes for this (in order to most likely or best to do first): 1. Reinstall both printer drivers. First remove both of the printer drivers and then reinstall the drivers from Epson's web site (most current). Even if this just started happening and you had the printers for a long time it still could be the printer drivers. 2. Change the printer spooler options. Depending on OS you have, open up the CONTROL PANEL then open up the PRINTER. RIGHT CLICK on the printer and then click on PROPERTIES. Under the advanced section you have mess with the spooler options (see attached picture, XP version). You can try printing to the printer directly to bybass the spooler. 3. If you are using Windows NT4.0, 2000, or XP stop and start the printer spooler service. Inside CONTROL PANEL, ADMINISTRATIVE TOOLS, LOCAL COMPUTER, SERVICES (2000 and XP) or CONTROL PANEL, SERVICES in 4.0. There you can stop the spooler service then restart it again. 4. Your spooler file for the Epson should be here: [Startup Volume] : System Folder : Extensions : Epson Folder : Spool Folder (IE. C:\windows\[extensions]\epson\[spooler folder]). If you still can't find it open up the Spool Manager that came with the printer and from there you can see the path. You can attempt to delete it (after the spooler service has been stopped) and then to restore it you can re-install the drivers. 5. Using the printer User's Manual as a guide, check the Spool Manager setup to make sure the correct settings are enabled. Check to see if Spool Manager is Held. Delete any queued print jobs and remove the check mark from the word "Hold" under the "Queue" menu. Ensure that an "X" is in the "Use Print Manager for this port" box. Make sure the spool directory is spooling in a directory other than C:\WINDOWS\TEMP, C:\TEMP, C:\DOS, or any software application directory, by checking the spool directory specified in the Spool Manager. If the spool directory is listed as any of the preceding directories, create a unique spool directory such as C:\COLOR or C:\SPOOL (or a directory name that you prefer) on your root directory. You can create a new directory on your root directory from File Manager in Windows or from the MS-DOS Prompt. Change the spool directory in the Spool Manager to the new directory in both the Queue/Setup and in Options/Default Spool Directory. I hope one of these works for you!
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