I'm using recycled paper. Could this be contributing to the 'Out of Paper' error on my HP Deskjet 1112?

Recycled paper can sometimes be more prone to jamming or not feeding correctly due to variations in texture and fiber. While the Deskjet 1112 can handle recycled paper, try using fresh, standard paper to see if the error disappears. If it does, the recycled paper might be the culprit.