I had the same problem yesterday on a credit card yesterday. I think it is the 3200, I am home so I cannot look at the machine. You do not have to feed it through a hole; simply replace the orange spindle in the new credit card roll, drop it in, leave a little paper outside, shut the cover, and hit the advance button on the left. Tear off the extra and you should be ready to go.
If the receipts come out blank, you've put the paper in backwards.