This process can be used for any project
      that needs to be merged from filtered Outlook data. For example purposes, we will use Christmas labels.
Andy Goodman’s latest Small Business Server 2000 tutorial offers a step-by-step guide to creating labels in Outlook. This process can be followed for any project that must be merged from filtered Outlook data.
First, go to the standard Contacts View in Outlook.
Now click View, Current
      View, Xmas
 (If it does not exist, go to the      Create View page at the end of this article.)

Hit  + A,
      which will select all the contacts that fit into our filter.

Click Tools, Mail Merge.

Select Only selected
      contacts and set the document type to 
      Mailing Labels.

Click Complete Setup.

Click on the Setup
      button. 

Pick your label stock from the list.

And click Close at
      the bottom of the window.

Next, click the Insert Merge
      Fields button.

Now insert the Fields you will use.
I like User_Field_1,
      which is where I put the heading for my labels (you can find it under All
      Fields when you are editing or adding contact info), such as The HandyAndy
      Clan or the Goodman Family. This little trick solves the problem caused by the   multiple name fields that Outlook uses. 
I also use the Mailing_Address field, as it saves
      having to do the address lines individually.
      
   
Once you have a label set up the way you like, you need to tell Outlook to Propagate Labels.
      
Click the Merge to New
      Document button.
      
Now tell Outlook to use All
      records, as we did when filtering with the view.
 
And finally, assuming you like what you see,
      Print the Labels.
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