You need to do the setup for the first label, so as to get the required layout. Use the merge preview to confirm. IIRC, Word 97 has an 'update labels' button, which will then propagate the first label's layout & content to all the other labels. you should then be able to run the merge and get the correct output.
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Cheers,
Paul Edstein
[Fmr MS MVP - Word]
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