I am working with an MXD that displays just fine in Data View but something seems seriously wrong in Layout View, to the point nothing shows up at all. I am not in Draft Mode, have tried clearing cache, tried zooming to certain features. When I go into Print and Page Setup, the small Icon on the bottom right is extremely obscured, and no matter what I switch it won't go back to looking normal.
Layout Error 1 displaying the preview as very blurry / pixelated may be an indication of communication issues with your plotter. Have you successfully used this plotter from arcmap before?
It almost appears that your preview is showing an extremely small area. If you check the dataframe properties, do the x/y location and width and height make sense?
What happens if you set up a new map document, and then copy/paste your layers into that?
If the issue is still there, try a different printer just to test printer communication. Any printer regardless of page size - just to test display under a different configuration.