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I have more than a year old Roland BN20.
Last week after setting up the sheet the printer head goes across the sheet and fails to recognize the roller pincher position and gives the error and the light blinks continuously and the machine beeps

The pinch roller position is incorrect
Sheet setup failed
After you have eliminated the cause of the error.setup the sheet again. 

I checked with a 9 inch roll too it still just goes right past the wheel and shows the error

I checked whether the wheel is in the smooth part of the roller but it was setup correctly, I even brought over a technician and even he said there should be no reason for the error.

I even reinstalled and installed the drivers and software, so could it be a problem of the hardware. if so which part should I replace?

PS:-  I live in the Maldives where there is no Roland service/repair centres.

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I am not sure if the bn-20 searches for the blue strip on the top of the roller assembly or a magnet embedded in that assembly but I would look into how it senses the roller and then see if that is present and if the sensor itself is dirty or faulty

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I've had the same issue, it I just release the pinch rollers, then readjust. 

Works each time. 

I'd try to call a Roland dealer, their technician might know what's going on. 

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I wanted to post this solution in case you tried the solution in the roland bn20 pinch roller error video yet it didn't solve the pinch roller problem. If no matter where you move the pinch roller you are still getting the error message, then it is because print head can not read the pinch roller's position. It is either the pinch roller sensor is unclean (dust/oil/ink) or the cable connected to the sensor is damaged (in that case it will need replacement/ you will need to call in maintenance). There is a sensor at the back of the print head. To see it, first turn off the main power from the back. Then gently take the printhead to the middle. Remove the media from the back, take a flashlight and go to back of the printer to peak through the gap. You will see the back of the print head. If you look closely, you will locate two squares next to each other with a slightly different color than the rest of the plastic and two very small squares that look like there is a very tiny camera in them located at the right of the squares.  They are the sensors and they need to be clean. You can use a new cleaning tool that you use to clean the head when making a manuel cleaning. Gently clean the sensors. After cleaning, put the print head back to it's resting location at the very right and turn the printer on. Hopefully your problem will be resolved. If you still having the error and you believe you cleaned the sensors, then it is very likely that there is a cable failure at the sensors. Since the print head is a moving object, those cables may get damaged in time. You will need to call in the maintenance. To change the cables, the whole print head will probably need to get dismantled. I am hoping this will help someone because when i had the problem and searched the internet, there was no resolution and I spent almost two days to resolve the problem.

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