Avery 5266 print issues

[tuck16]

I have used the mail merge in XP w/O 2003 for years, now on Win7 w/O2010 and cant get the file folder labels to print correctly. The sheets themselves say to choose "template 5066" so i tired it both ways; 5066 & 5266. The printer is the same HP LJ 1320. The font is smaller than before and it prints the text in the colored band rather than right below it it. Am i doing something wrong or can i change a setting to move the top indent for all the records down so that the printing comes out better (cant see the text on the blue & green label sheets)?

Thanks.