Hi Michael,

From the View menu, select Toolbars and then click on the Mailmerge toolbar.
This will cause a toolbar to be displayed that has all of the necessary
buttons to perform any mailmerge operation.  In your case, click on the
first button from the left and select Labels,  a dialog box will then open
from which you can select the type of label that you want to use.  After
doing that, a page of those labels will appear.  Now click on the second
button from the left and select the datasource.  Then, using the sixth
button from the left (Insert Merge Fields, insert the desired fields into
the first label and arrange them as you want the data to appear.  Now click
on the Eleventh button from the left (Propogate Labels) to copy the fields
from the first label into the other labels on the sheet.  Then use one of
the buttons on the right to execute the merge to a new document, or to the
printer.

Wonderful! Thank you so much for that. Still can't do it via the Wizard, same problem, but can now do via the Toolbar
Thanks a heap, Doug
Michael

You might like to see
http://www.gmayor.com/mail_merge_labels_with_word_xp.htm which covers Doug's
suggestion and related matters in rather more depth.