Start the merge from Outlook and instead of using the address block field,
insert the individual fields you require.

If you initiate the mailmerge from Outlook rather than from Word, you will
have access to more fields and more control over what goes on.

Hallelujah, it can be done! I was having a similar problem inserting a third
address line into a set of labels. Try this. Under "Tools" click "View mail
merge toolbar." When you are at the "arrange" step, click where you want to
insert the job title field, then use the "insert merge field" button __on the
mail merge tool bar__. When the window for that comes up, MAKE SURE to select
"address fields" at the top, then insert the job title field. After that,
doing labels I had to click "update all labels." By the way, I did not even
try "insert address block." I simply inserted each field separately.