Customer does a lot of 4 inch by 6 inch labels.
They had a 2050 before and it did the labels from the bypass with no problem. Bypass on the 2560 shifts everything too far over. Have to set the bypass to ledger to get envelopes working. Any other settings that could be changed?

Try changing the PDL in the driver. I had a similar issue with a 5050 and I believe I was able to fix it by changing the drive from the KPDL to one of the PCL languages, probably the 5c or 5e, I forget exactly.

Is the bypass shifting everything over or just the labels??? Are they a standard size??? Is there a longer edge/shorter edge,(i.e. can you rotate them??