Hello info66414,
Welcome, and thank you for using FixYa!
You are correct! The Do-hickie is actually called the "Paper Tray Sensor Flag" and it isn't supposed to be dangling down. When it is dangling and won't stay seated, it has been broken by accidental replacement of the paper drawer.
You will have to get ahold of your local Ricoh Repair shop and have them replace this sensor for you. Then it should detect paper properly again.
Have a great day!
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