Hi Tim
We've got 1200's and they do tend to get "confused". On the paper jam issue (and this might sound dumb) make sure the rear feeder/duplexer is fully secured, make sure it clicks into place - ours was slightly loose and led to a "false jam", see this link...
HP Business Inkjet 1200 Printer series*-* HP Business Inkjet 1200 Printer Series - False Paper Jam - c00448576 - HP Business Support Center