Looks like you figured it out OK on the original reel 1 is the problem. It probably is the reel optic sensor that is bad. Could be a connection problem, optic pcb problem (don't remember if a pcb or just sensor) or just the optic sensor. You can replace just the sensor or pcb. I don't have one with me to look at but will be home Monday. Carefully remove the sensor without damaging the plastic reel cage, they tend to be very fragile over time.
If no one else responds before Tuesday I can get you some more information.
Because it followed the reel assembly the problem is most likely the reel and not an MPU board, connection problem. Stick with the reel sensor and you should be able to get it going easy enough.
If you need help with parts or repair I may be able to help, but the vendors on the home page can get you whatever you may need.
It could be rubbing or something mechanical so try the reset mentioned above and see if you can get it to work at all. If not, probably the sensor.