Have you actually executed the merge?
In the Mail Merge main document, there should be a <<Next Record>> field
before the first merge field in all labels EXCEPT the first label on the
sheet.
See the article "Mailmerge Labels with Word XP" on fellow MVP Graham Mayor's
website at
http://www.gmayor.com/mail_merge_labels_with_word_xp.htm

Signature
Hope this helps.
Please reply to the newsgroup unless you wish to avail yourself of my
services on a paid consulting basis.
Doug Robbins - Word MVP
> In word 2003 label merge from an excel data source advances only one label
> per page so the 2nd label on the first page becomes the 1st label on the
> next
> and so on. I don't have this problem in word 2000. Is there something I
> might be missing?