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I picked one up for my VP540 and love it. It is great not having to baby sit the machine. I still find that I cant send too much at once though because it seems to track to the right on the take up system. I just may need some more practice loading it.
I just had the same error yesterday. I made sure that the circles were placed insided of the pinch rollers and that the base point was also lined up. I found that I needed to make sure that the media sensor was covered so I just placed a piece of tape over it and it worked out great.
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