Xerox 4500 Phaser Printer - out of paper error

My OS is win 7 pof 64 bit and I have an old Xerox 4500 Phaser laser, that uses a USB cable which is connected to the USB slot on the front panel of the pc, which is Lennovo M72e model.  I print from Word 2013, and the document is set to 8.5 x 11, letter size, and when I try to print, the printer says "Out of Paper", and when I press the "i" button on the printer, it says "Out of Paper, oad tray with Letter (85 x 11.0 in )Plain Paper.  but this is what is loaded from a new ream of paper, and on the printer it is set to "auto-select", which selects correctly, because the paper guide is correctly set.  But it does not print, and keeps giving me a "Out of Paper"  error, and when I hit enter on the printer, it says "Receiving from USB", but nothing is being printed.
I have another printer, which is an HP, and when I switch printer, it prints ok.  The HP has it own usb cable.
I tried using the HP usb cable to connect the Xerox to the same slot on the Lennovo, but the errors are the same.  
Thus I have eliminated the cable, and the usb issues, and now I am out of ideas.  Can the Experts see anything that I am doing wrong or not done correctly.  thank u for your suggestions.
jegajothyretiredAsked:
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matrix8086Commented:
I think that your printer has a problem with the senzor which detects if there is paper or not. I will suggest to call the specialized service.

Best regards!
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jegajothyretiredAuthor Commented:
In the tray, do u know which is the culprit? thank u.
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matrix8086Commented:
Sorry, I don't know! Can you print with paper from another tray?
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jegajothyretiredAuthor Commented:
In response to matrix8086, unfortunately NO, I have tried to setup on the printer to print from tray 1, then 2, ; and another configuration when the first did not work, was from tray 2, then tray 1, but both gives me error Out of Paper.
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matrix8086Commented:
In the printer settings change the paper type from "auto select" to Letter and let me know!
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matrix8086Commented:
How many trays the printer has?

Did you tried to stop and start the printer?
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nobusCommented:
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hdhondtCommented:
Can the printer print internal pages (e.g. the configuration page) from its front panel menu? If that works then the problem is in driver settings, or a mismatch between printer and driver settings. If it does not work either then it's definitely a printer problem.
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jegajothyretiredAuthor Commented:
in response to Nobus, thank u for the link.  I have been thru each and every of those check points, and made sure that no tiny pieces of paper were stuck any where.  When a piece is stuck, the error usually, is Paper Jam, but in my case it is "Out of Paper", even though both trays are loaded with the right type of paper, all flat and straight and no wrinkles, and the paper is securely in place in the tray.   But this "Out of Paper" beats me, and it looks like a sensor error.  The Q is where are the sensors located on both trays, and how do they look like.  Thank u.
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jegajothyretiredAuthor Commented:
In response to hdhondt, I downloaded the latest printer drivers for this particular model, and not the global driver.   I have on the printer, made sure the settings are correctly selected, for plain paper, the size 8.5 x 11; and tray sequence 2 - 1, or 1-2, or Off.  But still I get the same error "Out of Paper".
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hdhondtCommented:
As per my previous post, internal test pages are the way to test where the problem lies. If the printer will not print internal pages, then it's a hardware problem. If it does print them, then it's a driver/settings issue.

Any hardware error is most likely a sensor, but that would usually only affect 1 tray, not both. If the printer is set to "autoselect" or equivalent from the front panel then, even if one tray has a problem, it should still print internal pages from the other tray.
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jegajothyretiredAuthor Commented:
thank u for the suggestions.
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hdhondtCommented:
Thanks for the points, jegajothy, but what did you do to resolve the problem?
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jegajothyretiredAuthor Commented:
I tried a rubber cleaner and rejuvenator "Sprayway 203" which had good reviews, and it works erratically.  But the crux of the problem is to find the location of the sensors on the tray that is causing the Out of Paper error.  
Thank u for your response.
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