You could also try loading long edge first in another tray and see what happens. Process of elimination.
Is there a lot of paper curl once the paper exits?
If the paper works out of another tray with no problems it would seem that the problem is in the paper path from tray 1.
Had an issues similar, same machine and finisher. I had to install tray heater, lots of curl because client refused to use decent paper. If you don't have curl probably not the issue. How about an unlevel floor maybe throwing off the path between copier and finisher causing binding or drag.
Where is the tear on the paper located? Towards the middle on the lead edge?
You mention replacing the drive for the feed units?, but not if you replaced the feed rollers (usual cause) or the torque limiter.
There is no actual adjustment. You just have to eyeball it and take a former and bend it or a bender and form it. FYI, a former is a tool used for straightening type bars on old type bar typewriters. A bender is a pair of pliers.
What I have had trouble with is that when customers decide to relocate their equipment themselves and remove the finisher to move separately they do know realize that there are NO LIFT POINTS on the side of the finisher that is normally against the copier. Every cross member in there is not designed to be used as such. They are thin sheet metal and extremely easy to bend.
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