return address on mail merge labels

Yes you can. I managed to do that in the time between my original post and this one. But your response speaks to my point; with a program as powerful as MS Word, why would one user (you) think it couldn't be done and another user (me) have so much stinking trouble with what should be easy?

I had to use the wizard to get it done. When I went back to redo it so that I could outline the steps for anyone wanting to replicate it, I could not. I believe the trick was setting up my static info (logo and my business address) BEFORE I did any mail-merging. The other trick is instead of selecting "Address Block", which worked fine for my Publisher letter BTW, I had to build the address block myself from the components. So I selected "first name" then space "last name", and so forth. Again, needlessly complicated, and I can't replicate it outside the wizard. Grrrr. Now 2 hours of my life I'll not get back.

OK, I think I have it figured out. You MUST use the Wizard, and there are a couple of tricks.

1. Open a blank document, then select  Mailings > Start Mail Merge > Step-by-Step Mail Merge Wizard...
2. You're now on Step 1 of 6 in the Wizard. Select the document type. I selected "Labels." Then click "Next: Starting document" at the bottom of the window.
   
3. In Step 2 of 6, you get to determine the layout. For my labels, I had "label options..." as a choice. I clicked it and selected "8163 Shipping Labels" for my use. After that, click "Next: Select Recipients"
4. Before I did anything in this new window, I laid out my return address how I wanted it. I added my logo, sized it down, made the text wrap around it, and then I added my business name & address. I also changed the spacing so it wasn't adding a space before each return (indicating a new paragraph in Word).  After my return address looked right, I hit return a couple of more lines, then hit the "increase indent" tool, so that when I build the address block, it'll be more centered on the label instead of aligned left.
5. After my return address was built, then and only then did I start the recipient selection in the mail merge wizard (step 3 of 6). I clicked "use an existing list" browsed my way to a spreadsheet I had already. Then I filtered my results as I wanted. Alternately, you can use the check box to select recipients.
6. Once that's done, click "Next: Arrange your labels"
7. I selected "address block." but for some reason it didn't pull the state into the address, so instead I had to use "more items" and build my own address block one by one. After you have all the items in place with the appropriate spacing, commas between the city & state, etc., you can highlight the entire block you built and change the font, size, etc. to your liking.
   
8. Then click the box reading "Update all labels" This seems to be the piece missing if you don't use the wizard and try to do it on your own, which led to me pulling my hair out. Your welcome. ;-)
   
9. Once that's done, click "Next: Preview your labels"
10. Now, cross your fingers, legs, eyes, and anything else you have and click "Next: Complete the merge"
11. Ta, da!
12. Offer your profuse thanks because I hammered through it and saved you the agony.