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Wow, microcassettes! (Sorry, I thought they were so cutting edge when they were.......cutting edge!) Anyway, forgive the humour - you've most likely got a tape jam in the cassette itself but if it does this with other cassettes then you've got a dead rewind function your message indicates that you've got a later model recorder with a status display. What does Fast Forward do? I know it's annoying but the cheapest option may be to turn the cassette over and use FF if it works OK. Have you checked out digital pocket recorders? For the same money, or less, than yours likely cost new, they free you from cassettes, tape winding time, poor quality - all those analogue hassles. The memory (time) capacity even the most bog-standard (as we say in the UK!) ones have is mind blowing.
Hi Dan, Yes it is a very nice system, but like any device it is sensitive to electrical storms and power fluctuations. A surge or sag (AC power going up or down), can cause the sensitive digital chips to get damaged, and from my experience if you have tried resetting the unit, and your msg lites continue to flicker and the LCD is blank, it has some serious damage and needs repair or replacement.