I'm sure Word's international formatting is better than when I last looked,
but as you say it certainly reverses the code and city in the case you
mention and perhaps others. When I last looked at how Outlook worked with
addresses, I concluded that only a small number of "patterns" were in use
worldwide (I think it was only 5 or 6), and I have to conclude that Outlook
either usually or always gets it right but that Word sometimes gets it
wrong.

I suspect that the only things you can do are
a. report the problem to Microsoft, e.g. by e-mailing mswish@microsoft.com
(don't expect anything to be fixed, though!)
b. use individual fields rather than the Addressblock, at least for those
countries where you know Word gets it wrong. Graham Mayor has relevant pages
on his website that should help you here:

http://www.gmayor.com/mail_merge_labels_with_word_xp.htm  and
http://www.gmayor.com/formatting_word_fields.htm

Peter Jamieson

Don't use the Address Block.  Just insert the individual merge fields that
you want to use in the configuration that YOU want them.