I am having trouble with creating labels with template no 5160, please see image attached. I created each text portion by simply clicking in the window and tabbing forward as needed.

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So what's the problem - aside from the fact that you appear to be using an old Avery document as a template, rather than create the appropriate document using the Envelope tool on the mailings tab, which should give you a table with the correct spacing?

You might also consider http://www.gmayor.com/Envelope_Label_Add_In.htm which comes with an appropriate template for Avery 5160

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Graham Mayor - MS MVP (Word) (2002-2019)
Visit my web site for more programming tips and ready made processes www.gmayor.com

I have yet to hear of an instance when templates from Avery have been superior to using the mailings tab > labels > Options and picking the correct number.

These were developed for Word 6, and became obsolete with Word 97 if not Word 95. They have remained obsolete through Word 2000, Word 2002, Word 2003, Word 2007, Word 2010, and Word 2013. I expect Avery keeps putting them out so that people will not realize that competing label brands also work with Word.

The screen shot below is from Word 97. In Word, labels are tables and best viewed, in my opinion, with table gridlines showing and with non-printing formatting marks displayed. Showing non-printing formatting marks in Microsoft Word

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