"Ink cartridges cannot be recognized" when using genuine Epson

That seems to be what it means. I am unable to even use the scan function on my epson 500 without all of the inks installed and with ink.

This might ba an issue with the cartridge holder in which its not recognizing inks or inks are defective. Call Epson for cartridge replacement is reinstalling of inks doesn't work.

Here's a tutorial on how to do it:
Solved Epson printer doesnt recognize Ink Cartridge

have you bought genuine ink cartridge?? if it isnt genuine or original the printer wont recognize it at all..

Newer Epson ink cartridges and other manufacturers place a chip in the cartridge that interacts with the printer, telling it is a genuine cartridge.

If an aftermarket cartridge is used, it may not have the chip and subsequently will not work with the printer.

The best work around is to use genuine Epson cartridges, but when they are empty, take them to a store that can re-fill them or exchange them for a previously refilled genuine cartridge.

Make sure it is the correct. size. good luck. :0)
Epson Stylus Photo RX580 All-in-One Printer High Capacity Color Ink Cartridges Multi-Pack
T088920


Epson Stylus Photo RX580 All-in-One Printer High-Capacity Yellow Ink Cartridge
T077420

Epson Stylus Photo RX580 All-in-One Printer High-Capacity Light Magenta Ink Cartridge
T077620

Epson Stylus Photo RX580 All-in-One Printer High-Capacity Light Cyan Ink Cartridge
T077520

Epson Stylus Photo RX580 All-in-One Printer High-Capacity Black Ink Cartridge
7077120
here is web site.
http://www.epson.com/cgi-bin/Store/BuyInkResults.jsp?BV_UseBVCookie=yes&oid=63059193

Try this. Insert only 5 only ink tank, without LM. See status monitor. All 5 ink status look gray? and LM look cross. Try to another ink tank left. Last, insert all ink tank. All ink tank not recognized (cross sign)? If yes, the problem probably is epprom.

Hi. When I fitted the second set of cartridges to my Epson Stylus Photo 1400, the printer failed to recognize any of them, even though they were genuine Epson! I repeatedly installed and un-installed them without success. After giving it a bit of thought, I had a hunch that the contacts on the cartridges might not be making good contact with the contacts on the printer as the cartridges seemed a little loose. I removed each cartridge in turn and after putting some adhesive tape on the opposite end to the contacts, (there are grooves cut into this end, but the tape drops nicely into them when you install the cart) replaced them all. (This had the effect of pushing the cartridges harder against the contacts). Switched on again and all carts worked fine. So it seems that even Epson can't make the cartridges to fit their own printer properly! Having said that it's a great printer otherwise. I hope this is helpful to you.

try this hold down all 3 bottons for 20 sec this will reset your printer
DONT FORGET TO RATE

Hi-

You are having a hardware problem with the printer, the sensor is damaged. call epson @ 5622761300 for replacement ink and printer.

Hope this helps