Hi Michael,
I'm not sure what formatting/spacing you want to change on the fly to
"dynamically size per-page output" in your labels.
Those "labels" have a fixed size and layout?
You might vertically center the text in each label to make it look good
independent of the amount of rows on it.
The built-in wizard for labels ("Tools > Letters and mailings > Envelopes
and labels") or the corresponding VBA functions could help you (if you don't
already use them).
Maybe you could run a macro after you filled the labels, and "copy fit" if
the text doesn't fit on the label (by changing to a "narrow" font, or a
smaller font size...).
http://www.mvps.org/word/FAQs/Formatting/FitCopy.htm has some tips on copy
fitting.
But probably, it makes more sense to limit the amount of text in your
records to some maximum, and choose the label layout so it fits in any case.
Greetings,
Klaus