As Fred pointed out, the roll/sheet selection is part of the driver settings.  It actually does communicate that information which is why you get the mismatch.  Since the roll/paper selection is part of the paper loading process on the printer itself, if the driver is set for sheet and the printer is set to roll (or vice versa), you get the error.  There's no way to auto-correct or auto-switch though because the two source options have different requirements as far as margins, top/bottom feed, cutting, etc.  For example, if you have a roll loaded and your driver is set to sheet, you cannot automatically switch the driver to roll during print time because that will change the printable area on the page and require reformatting of the document.  That's the basic reason that the driver can't just read what the printer knows is loaded as far as media and automatically switch: the driver settings have to match the parameters used for sheet vs roll.

Regards,
Mike