Paper out would not stop them machine from working. Most likely you have some sort of failure within the netplex bus which controls reels, validator, and printer amongst other things. I would be begin by disconnecting the printer and the bill validator to see if the machine powers up without the reels spinning slowly. If it does, power down, put back validator to see if it powers up correctly. If it is still does, then there's probably something wrong with the printer, you can plug it back in to see if maybe something was just loose as well.
NOTE: ALWAYS power off machine when plugging or un-plugging components. Serious damage can occur if you don't.