Wow - I figured it out in 2 seconds. Filter Recipients. Duh. That is so much easier, not to mention it works.

Thank you macropod!

Although I do wonder, before when I hit "update labels" - why didn't it replicate what I had in the 2nd label into ALL the labels, but instead reverted back to "next record" in all labels???

Still curious about that one - but otherwise, thanks so much.