[Beth Melton]

Have you actually tried this in Word 2007 and *mail merge* labels, Graham??

Regular labels are fine and they automatically use no spacing with no need
to modify the defaults. It's when using mail merge this occurs. As soon as
you select Labels as the main document type, space *before* each paragraph
and single space are added as direct formatting. The new defaults use 10 pts
space after (not 12) and 1.15 lines between.

Additional Notes:
- When using Outlook 2007, Word is irrelevant since Outlook no longer uses
Winword.exe and does not use Normal.dotm.
- If you want to avoid the issues with table styles, and other style nuances
we experienced in past versions, then you should modify the Document
Defaults and leave the Normal style unmodified.
- The Normal template for Word 2007 is always Norma.dotm - never
Normal.dotx.

~Beth Melton

"Graham Mayor" wrote in message
...
The normal template in Word 2007 will be normal.dotm (or dotx) rather than
normal.dot which was for earlier versions, and suggests that you are
editing the wrong file. It is certainly possible to set the normal style
to have no space before or after and thus have labels which match. Right
click 'Normal' on the home tab. Choose 'Modify'. Remove spacing from the
paragraph formatting options. Check the 'new documents based on this
style' check box and when you close out of Word (plus Outlook if running)
, save the normal template when prompted.