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I would suspect the paddle wheels which bring the paper into position for the folding. Make sure they are working. The best way to determine what the problem is is to open the finisher door and 'cheat' the interlock switch and watch what is happening. This is what a tech normally does. Some covers may have to be removed to see closer. The paddle wheels are the main cause.
Run test fold jobs using the document feeder and select fold and staple. This will tell you if its a driver issue. Sometimes reinitializing the finisher to default nvm settings can fix a problem. Reloading the iot/ finisher software is another option.
Our tech said he already did the NVM wipe and reloaded sofware. Got the whole new finisher in today and same problem.
Our machine was sold to us by a local copier office, it is the first Xerox they have sold, just became dealers of them. They have always sold just Canon. They sold us one but dont know much about them. They are going to try and get a Xerox Rep to fly in to take a look at it.
They told them no before, so we will see what happens now. Really dissapointed in Xerox!!! The quality of the prints are awesome, but service and reliability is aweful. We will not buy another Xerox. You seen Xerox's response on here to my problem, almost funny.(SEE OUR BOOKLET MAKING GUIDE)
Thank you for your help!!!