When I try to print from the PC it makes a clunking sound and says "no paper" yet there is plently of paper - not jamed, loose. If I scan print from the printer it works perfectly.
I have reinstalled the software & that made no diffence.
Please help!

Has this printer ever worked or is this a new installation?

First step is to make sure the paper is properly loaded. If the paper is not loaded properly it may me trapping a low paper flag or sensor, so the printer thinks it's actually out of paper. What this means to the PC, is that the printer will busy out the port until the failure is cleared. Also, what interface are we using. Serial - Parallel- USB?

I suspect that the flashing light is nothing more than the printer telling the PC and you that it is receiving data into its buffer. Once the buffer fills, the printer signals the PC to shut down the communication link.

Next step would be to see if the printer will let you print out an internal test page. If it does, remove the cable from the PC and then print the page. Still - no print then come-on back.

Also, when you come back, I'd really like to know what platform you are running on. Microsoft, Windows, Redhat, Linix