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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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