I would get some shredder oil and try to lube your shredder. Shredders really need oil every month or so, so if it's been a while, that may be your problem. Oil your shredder, and then see if you can unjam it by running it in reverse. More explanation here: http://hubpages.com/hub/Paper-Shredder-Oil
I would definately say that you ahve some sort of jam in the lower half of the unit. If this is not the case, and you can see through it from bottom side up, then you have a belt slipping. There are 'toothed' belts that drive these. Most people call them timing belts, if you can get a hold of one or make sure yours hasn't come loose, I would.
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