Printing only bottom half of picture.
I had the exact same issue with mine! I didn't manage to fix it, but I know exactly what the issue is. If you open the printer, you'll find a black rectangular box above where the film fits inside the printer. This black box is connected to the board above it, and is supposed to press down against the film, and then against the paper for it to print properly. There is a little bar above the rectangular box, and there should be two plastic pieces on both ends of this bar. The bar is also connected to the gears, and when the gears move the bar, the two plastic pieces coming off of the bar push the black box down. When I looked at mine, only one of the plastic pieces was doing its job; the other one was broken, and was sliding on the bar. Tried some super glue, wouldn't work. I suggest tossing it out like I did, unless it's still under warranty or you want to try fixing the plastic piece so the printer head gets pressed down all the way.