I do not have a 260 either but the following is from the Epson manual. There is a lever on the left side that needs to be in the down position. Also one trick I found on the R800 is if you slightly lift the back edge of the tray while inserting it goes in much easier, no idea if it applies to the R260
Inserting a CD or DVD
Caution:
Make sure the data, music, or video is burned on your ink jet-printable CD or DVD before you print. Otherwise, dirt or scratches on the surface may cause errors when you burn the data.
2. | Open the front cover, then set the front tray to the CD/DVD position by pulling the tray lever down. |

Caution:
Before you move the tray lever, make sure no paper or other objects are on the front tray and the front tray is not extended.
Do not touch the front tray when you move the tray lever.
Do not move the tray lever while the printer is printing.
3. | Place the CD or DVD on the CD/DVD tray with the white or printable side face-up. Make sure the disc lies flat in the tray. |
Caution:
Before you position the CD or DVD, make sure that no foreign particles or substances are on the CD/DVD tray, as these may damage the disc’s data side.
To print on a small CD or DVD (8-cm), place the small CD/DVD adapter on the tray first, then place the CD or DVD inside the adapter. Make sure the tabs on the edge of the adapter fit squarely into the molding of the tray.
Caution:
Make sure you always use the small CD/DVD adapter when you print on 8-cm CDs or DVDs and that the CD or DVD and adapter lie flat on the tray; otherwise the printer may be damaged.
4. | Gently insert the CD/DVD tray along the base of the front tray until the arrow marks on the CD/DVD tray and the front tray match each other. |
Caution:
Make sure both sides of the CD/DVD tray slide underneath the brackets on the front tray.

Caution:
Do not insert the CD/DVD tray while the printer is printing; otherwise, your printer may be damaged or the surface of the CD or DVD may become dirty or scratched.