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lexmark e250 doesn't switch paper sizes

We have a Lexmark e250dn printer with an extra tray.

When my boss prints his excel worksheets he wants it to automatically choose the correct tray.

The printer is on the LAN and the printer queue is on our 2003 server.  I have the tray selection set to automatic.  The extra tray is installed.

Can anybody help me with this?
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He is a CFO.  He prints A LOT of Excel spreadsheets, many of them legal size.  The second paper tray is the one holding legal paper.

I tried switching legal to the built in tray but then everything was printed in Legal size.

We have 6 E250dn machines and 1 E260dn.  Only one E250 and the E260 has a second tray attached.
I tried printing an Excel sheet from my computer.  It did not change trays automatically for me either.

Is there a setting on the tray that indicates the paper size?  I assumed it is simply the size of the tray setting to hold paper.
I looked at the printer and I don't see any special settings for paper size on the machine itself.
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