Laser printers use a "fuser" to heat the toner and permanently affix it to the paper. It's the only part of the printer that produces heat, so it's probably the part that's overheating and burning paper. You can get a rebuilt fuser from PrinterWorks for about $60 (you return the old one to them) -- http://www2.printerworks.com/cgi-win/tpwall.exe/find?RG9-1493-000. You'd have to swap parts yourself or find somebody to do it for you.

On the other hand, you can get a new P1006 directly from H-P for $99, which is probably the better deal.
http://h10010.www1.hp.com/wwpc/us/en/sm/WF06a/18972-18972-3328059-14638-3328066-3435682.html