When creating a sheet of labels, there seems to be an error in how Word fills
in the mail merge fields. If the label vertical distance is exactly twice the
label height, ie. the space between labels is equal to the label height, Word
will make a table where all rows have the same height. When filling the table
with mail merge fields, also the rows supposed to act as between-label space
get filled with the fields.

Work-around: Make the label height slightly smaller, e.g. 1 mm less, to
create non-equal label heights and space between labels.

Hans.