I have Works 2000, but hopefully that won't make much difference.
>> I must make a new word document and ...
I don't know how you did it before, but according to Microsoft's Knowledgebase, that's how it's done now.
It's not too hard, try & keep up.
1. In the database, mark the records you want to merge.
2. Start a blank Word Processor document, choose Labels from the Tools menu.
3. Choose Mailing Labels, click OK.
4. Choose your label type (I think we use Avery A4, L7162), click New Document.
5. For "Open Data Source", choose "another type of file". Find & select your database, click on Open.
6. Insert Fields pop-up ; insert the required fields in address layout (name on one line, press Enter, Address1 on next line, press Enter, etc.). When all the fields you need are in, close the Insert Fields pop-up.
7. Menu-wise, go Tools -- Mail Merge -- Filter & Sort. There should be a "Use Marked Records" button all ready for you, just click it. Then click OK.
8. Back in the document, you can use the View Results navigator to scroll through the (filtered, marked) records (labels). Or you can go into Print Preview to see the finished results.