Mail merge help!!!!

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I really need some help with Word's Mail Merge. I am trying to use an excel
spreadsheet as my data source to make mailing labels, but every time I try it
says "initializing connection..." (or something like that) and then the
program freezes up. I just got a brand new computer with Office 2003! It
should be working. If I use a Word document as my data source it works, but I
still don't understand how to make mailing labels look the way I want them
to! They put one address on each page, and then I have to go through and move
them one by one! Can someone please help me?!
 

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