"Book fold" has always been a bit wonky, ever since it was introduced in
Word 2002. If you can't get it to work for you, see
http://word.mvps.org/FAQs/Formatting/BookletPrinting.htm for other options.
As for skipping records, note that the "Directory" mail merge type does not
require a «Next Record» field, just your merge fields followed by an empty
paragraph.

Signature
Suzanne S. Barnhill
Microsoft MVP (Word)
Words into Type
Fairhope, Alabama USA
> First of all, I am using Word 2007! There does not seem to be a lot of
> information out there for this newest version. I'm trying to format and
[quoted text clipped - 11 lines]
> and
> no amount of creative folding can get it in the correct order.