I few weeks ago I searched the www.fixyourownprinter.com forums for help on fixing an HP LJ5P with a stuck paper jam led after I did all the maintenance replacement parts.
I did not get find my answer on the forums BUT I did solve the problem!!
 
 
Turns out I install the plastic opto-flag in backwards! I was actually able to install it backwards!
I turned it around and presto, everything worked.
 

When I had the main board out to replace the pickup roller, I must have knocked the opto-flag out of it's normal location. When I put it back, I put it back completely backwards.

Drop me an email if this solves your problem.

Thanks!,

 Mark