You can exercise much better control if you use conditional fields to place
the field and the line feed when the field has content eg
{Mergefield fieldname1}{IF{Mergefield fieldname2} <> "" "
{Mergefield fieldname2}"}etc
You may find http://www.gmayor.com/mail_merge_labels_with_word_xp.htm and
http://www.gmayor.com/formatting_word_fields.htm useful also

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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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> In past versions of Word mail merge there was a dialogue box with the
> selection asking the user if they wanted to suppress blank lines.
> Nothing of this sort exists in Word 2002 mail merge. Does anyone have
> a solution to this problem?