From MS Word Help Files:

Create envelopes by merging an address list

Step 1: Create the main document

1. Click New Blank Document on the toolbar.
   
    
2. On the Tools menu, click Mail Merge.
   
    
3. Under Main document, click Create, and then click Envelopes.
   
    
4. Click Active Window.

   The active document becomes the main document.

Step 2: Open or create the data source

1. In the Mail Merge Helper dialog box, do one of the following:

   *Create a new data source. Use this method if you haven't already stored names, addresses, and other data in a data source, and you want to store the data in a Word table.
    

   
   *Use data in an existing data source. Under Data source, click Get Data, and then click Open Data Source. Select a Word document, or a worksheet, database, or other list, and then click Open. Click Set Up Main Document.
    

   
   *Use addresses from an electronic address book. Under Data source, click Get Data, and then click Use Address Book. Select an address book, and then click OK. Click Set Up Main Document.

Step 3: Select the envelope options and insert merge fields

1. If you don't see the Envelope Options dialog box, click anywhere in the main document, and then click Mail Merge on the Tools menu. Under Main document, click Setup.
   
    
2. On the Envelope Options tab, select the envelope size you want, and adjust the address format and position on the envelope.
   
    
3. On the Printing Options tab, make sure that the selected envelope feed options are correct for your printer, and then click OK.
   
    
4. In the Envelope Address dialog box, insert merge fields where you want to merge delivery addresses from the data source. To insert a merge field, click Insert Merge Field, and then click the field name you want.

    

5. If you want to include POSTNET bar codes and FIM-A codes on envelopes, click Insert Postal Bar Code. Specify the merge fields that contain the ZIP Code and street address, select or clear the FIM-A courtesy reply mail check box, and then click OK.

    

6. Click OK.
   
    
7. In the Mail Merge Helper dialog box, under Main document, click Edit, and then click the envelope main document. Verify the return address, or delete it if the envelopes have a preprinted return address.
   
    
8. On the Tools menu, click Mail Merge.

Step 4: Merge the data into the main document

1. If you want to specify the order in which data is merged, or merge only part of the data, you can sort and select data records to merge.
   
    
2. If you want to see how the merged data will appear, you can preview the merged documents.
   
    
3. In the Mail Merge Helper dialog box, click Merge under Merge the data with the document.
   
    
4. If you want to check the data source for errors before you merge, click Check Errors. Choose an option, and then click OK.
   
    
5. Do one of the following:

   *Send the merged envelopes directly to a printer. Click Printer in the Merge to box, and then click Merge.
   
    

   *Store the merged envelopes in a new document, so you can review, edit, and print them later.

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