Kathy,
Microsoft has a Word template for that at:
http://office.microsoft.com/en-us/templates/TC010185831033.aspx

1. You can Edit the First Page to put the school's name and mascot, or what
ever you want.
2. If you created a data base using Excel, edit the members pages as if you
were creating labels, and use mail merge.

I am putting together a school directory. We have permission from the
parents
to print and share the info for student and parent nonbusiness use only.  I
have never done this before.  Are there any programs.  I have Office XP.
Not
sure how to proceed.  Any suggestions??

Thanks

I assume you're using Excel :

Use the first row to creat meaningful headers for instance:
In Cell A1 type "Student first name" in cell B1 type "Student last name"
Then use the cells in colms A1 and B1 to enter the data for the directory:

Example:
A2 :  John
B2 :  Smith
A3 : Kathy
B3 : Jones

Etcetera. You can add more meaningful columns with other information for up
to 65.000 students ( which might be enough :-)

Good luck

Hans