Even though this has a serious lack of response I'll post my solution...
The issue was firmware. On this webpage http://www.support.xerox.com/SRVS/CGI-BIN/WEBCGI.EXE?St=434,E=0000000005291131003,K=2467,Sxi=11,Solution=obj(20488) it states "If the system software version is lower than 21.120.60.035, then upgrade the software to resolve the issue."
The newest version of the firmware on the xerox website to download however is only 21.120.52.000.... So I had to contact the 3rd party we purchased this from and they HAVE to do the install themselves...