the 1/8" and the 1/2" is normal limitations of the QTR Page Setup. I think the bottom is actually .58" according to QTR. Is that the problem you are having? Or is it something else?
I just tried a blank 8 1/2 x 11 sheet. It did go through and gave the 1/8 margins on the sides and top but stopped about a 1/2 inch
short of the bottom. Also, now when I try to do one with an image on it, I get a paper feed error after I hit print in QTR.
FYI, I am using the front feed on the printer.