SP 300 circles are printing oblong and carriage separation error

My SP 300 just started doing weird stuff. Circles are coming out oblong. I had 2 carriage separation errors. and the ink seems to be puddling up over the sponge area.

I cleaned it all up and reprinted my decal. The circles came out good but about 6" into the print I got the carriage separation error again.

I pulled the cover off and noticed that the red ink is puddled on the sponge area. I turned it off. Turned it back on. the circles are oblong again and another carriage separation error 6" into the print.

Any suggestions?

marianne