Your data really aren't set up correctly for this. To prepare the data:
1. Use Find/Replace with -
Find = ^p
Replace = ^t
then -
Find = ^t^t
Replace = ^p
2. Select the whole lot and use Insert|Table>Convert Text to Table>OK to turn the data into a table.
3. Add a header row to the table, with Name, Address1, Address2, Address as the cell contents.
4. Save the document.
5. Create a new document and choose the label format you want via Mailings|Start Mailmerge>Labels.
6. Choose Select Recipients>Use Existing List and navigate to your document containing the labels.
7. In the first label, use Insert Mergefield to insert the Name, Address1, Address2, Address fields.
8. Arrange the label layout how you want it to appear.
9. Click 'Update labels'.
10. Save the mailmerge main document as a new file.
11. Click on Finish & Merge>Edit individual Documents>OK.

__________________
Cheers,
Paul Edstein
[Fmr MS MVP - Word]