I gave up on compatables with my Epson ages ago. Not recognised, poor printing etc... if you search these forums you'll find lot's of problems similar although your symptoms area little different.
My money would still be on a problem with the cartridges though. Jettecs (T0711/2/3 and 4 types) are the only brand I now use. The only question is whether the printer will recognise another new set now.