Although it seems like you have a few different problems, this sounds more like a paper jam or a carriage jam.
--Blinking Lights--
Would you say the ink light is blinking quickly or slowly? I have seen printers go "offline" due to a jam of this nature. You can try cleaning the wheels or searching for a little piece of paper stuck in the gears or otherwise inside the printer.
When you get these series of problems, can you hold down the power button and the cancel button (red X) and at the same time to get the printer to print a test page?
I understand it can print when you reboot the PC, but what about when you perform a hard reset on the printer (unplugging the power cord from the back while it is powered on)?
Answer those questions for me please and I will be happy to help.