You have to set the document type to labels - see
http://www.gmayor.com/mail_merge_labels_with_word_xp.htm or
http://www.gmayor.com/merge_labels_with_word_2007.htm

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Graham Mayor - Word MVP
My web site www.gmayor.com
Word MVP web site http://word.mvps.org
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> I'm trying to mailmerge to a label document already created but it
> wont give me the 'next record' field. Therefore I've got 300
> addresses in the first label over 300 pages! Please help. I've
> tried entering the field manually (via Insert/field/next) but this
> does not work.