Are you using ADDRESSBLOCK?

If so, then for example, if you chose the Mr. Josh Q. Randall Jr. layout and
the title (Mr.) and "Nickname" (Josh) are either blank or not matched, the
layout will stil insert a space before the "Q.". IN essence, the layout
expects there to be either a title or a nickname. Incidentally, if there is
a title, no nickname, and a "middle name" you will get Mr.  Q. Randall Jr.
(i.e. two spaces before the Q).

You can either try reinserting your ADDRESSBLOCK with a different layout
that matches your data better, or use individual merge fields instead - see
Graham Mayor's pages at
http://www.gmayor.com/mail_merge_labels_with_word_xp.htm
and
http://www.gmayor.com/formatting_word_fields.htm

Peter Jamieson