I can't find the code that keeps printing records on one letter until the Key changes.



I also need a better understanding of how/where template text gets folded in to the coding.

Is your mailmerge main document configured for a Directory merge?
The field code provides for text both before and after the repeated records. If you expand the field code for the 'Using One Key' example from page 9 of the tutorial, except for the colouring, you'll see:
In the above, the:
• green content outputs whatever goes at the start of each letter.
• orange content outputs the repeated data.
• red content outputs whatever goes at the end of each letter (technically, {IF{MERGEFIELD State}<> 0 {QUOTE 12}} is part of that).
• blue QUOTE field generates the page breaks between letters.
• purple fields manage whatever you use as the KEY to indicate a change of grouping.
• black content does the housekeeping, pulling all the others together and ensuring you don't get output being generated at the wrong time.

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

OK. Thanks. I'll start playing with it again this morning. Just to make sure I understand, the "Repeated data" in the orange fields represents the multiple rows of data I have for each key?