Note that the merge process puts a frame on the envelope formatted with the
envelope address paragraph style, but the cursor automatically goes to the
return address location. You need to ensure that your mergefields go in the
frame.
http://www.gmayor.com/changing_envelope_layout.htm (although aimed at
Word 2003) should help demonstrate the process.
--
Graham Mayor - Word MVP
My web site
www.gmayor.com
Word MVP web site
http://word.mvps.org
Meebers wrote:
Ahhhh yes! with the Ctrl+Shift+8, it appears (Just like it is
supposed to) 
"Herb Tyson [MVP]" wrote in message
...
Cool! Glad it's working out.
As for the pilcrows... Word can display "non-printing formatting
characters," such as the pilcrow, which represents a paragraph mark.
Little dots for spaces, little arrow for tabs, etc. They are
exceedingly handy for figuring out why a document is acting strange,
or exactly what's in your document. You can reveal/hide them by
pressing Ctrl+Shift+8, or by clicking the Show/Hide tool in the
Paragraph section of the Home tab. What might look like white space might
actually contain a number of
non-printing formatting marks. And, while they don't print, they can
sure get in the way at times. So, most of us long-time Word users
rely on them to know where the ghosts & skeletons are hidden.
Cheers,
--
Herb Tyson MS MVP
Author of the Word 2007 Bible
Blog: http://word2007bible.herbtyson.com
Web: http://www.herbtyson.com