Mail merge in Word 2002

[capitan]

Hi all.

I'm having a problem trying to use mail merge to print labels in Word
2002. Data source is a spreadsheet of names and addresses from Excel
2002. Word version is 2002 SP3 with all updates (10.6826.6825). This
is on an XP SP2 tablet with all critical updates.

Here is what actually happens. In Word with a blank document open, I
click Tools, Letters and Mailings, Mail Merge from the menu. In the
mail merge wizard I click labels, next, change document layout, label
options from which I pick Avery 5160 (then OK), next, use an existing
list, browse, select my excel file, OK to the sheet, OK to the mail
merge recipients, next, address block, uncheck "insert company name",
OK, Then when I click eihter the "Update all labels" button in the
wizard, or the "propigate labels" button from the mail merge tool bar,
only 5 labels on each page actually update, and the rest just say "next
record". It's actually the first 3 labels and last 2 labels of each
page. Has anyone every heard of a fix for this problem or have a
suggestion?

I googled it a bit and found KB835706, but so far that is the closest I
can come to an answer.

Thanks in advance.