Does mail merge for labels work in Word 2003?

Trying to do my first mail merge to create labels from an XL list in
Word 2003. What a mess! I waded through it all, but I'm getting a very
weird result. Instead of one label for each person, I'm getting a page
of labels for each person, but not with all the labels that same
person. There is a page for each person on my list as the first label,
then the next 13 labels are for the next 13 people on the list! So the
first page has the first 14 (14 labels to a sheet) people on the list,
the second page starts with the second person on my list and ends with
the 15th person, and the third label starts with the third person on
the list and ends with the 16th person, and so forth.

Does anyone have a clue as to what is happening? Better yet, how to
fix it?

Thanks!