Labels mail merge repeats on subsequent pages?

I'm trying to do a mail merge to print to labels. The first field in the document does not contain a { NEXT } field code, and because of this the records repeat between label pages for example:

Notice how the records shift to the left as the next page is displayed? But how they start over again in an off by one manner?

Now I've tried to fix this by using the first record displayed on a page to see if the page number is 1. If it not on page 1 of the mail merge then it should just move to the next record; otherwise it should just display the first record:

This doesn't work however, because when I do the preview and display the {page} field code, it reports that I am always on page 1 and thus the same behavior continues instead of just moving to the next record on the next page.

Oh okay so it is working right...Microsoft can't make their previews work right in the Mail Merge for 2007, so here is what I did:

1. Open a Blank Word Document
2. In the ribbon bar click the Mailings Tab
3. Click the Start Mail Merge dropdown button.
4. Click Step-By-Step Mail Merge, the Mail Merge wizard will appear in the right hand panel.
5. Click the Labels radio button
6. Click the hyperlink which reads Next: Starting document
7. Click the radio button Change document layout
8. Click Label options...
9. Select the type of label or equivalent type of label you are using.
10. Click OK
11. Click the hyperlink that reads Next: Select recipients
12. Click the radio button Use an existing list
13. Click the hyperlink Browse
14. Find your excel file by selecting it.
15. Pick the worksheet that your mail merge data exists on.
16. Make sure all the rows of data with checkboxes next to them are rows that you want in your labels.
17. Click OK
18. Click the hyperlink Next: Arrange your labels
    1. Click the hyperlink More items, and in the resulting window double click the fields you need until you get to the second line of the address.
    2. Press ALT-f9
    3. From the ribbon bar click the Insert tab.
    4. Click the Quick Parts dropdown.
    5. Click Fields... to insert field codes.
       1. In the Field dialog from the Field names: double click IF
       2. { IF \* MERGEFORMAT } will appear, delete the \* MERGEFORMAT part.
       3. With the cursor just after the { IF click the More items... hyperlink again...
       4. Double click the field that represents the second line of the address.
       5. After the { MERGEFIELD "addr2" } is added to the { IF field type = "" ""
       6. click the More items... hyperlink again...
       7. Double click the field that represents the second line of the address.
       8. Put quotes around the field you just inserted so that you have this: {IF { MERGEFIELD "addr2"} = "" "" "{ MERGFIELD "addr2" }" }
       9. Put your cursor between the second to last bracket and the last double quote, hold Shift+Enter. Now when the label has a second line address it will appear and when it does not have a second line address an additional line will not appear.
    6. Add the rest of your fields using the More items... hyperlink (this may not be as easy as it seems depending on the size of your labels).
    7. From the ribbon click the Mailings tab.
    8. Click Update Labels, the changes will propagate to all your other labels.
    9. Press ALT+F9
    10. Click the hyperlink that reads Next: Preview your labels
        • Note that from here you may have to press ALT+F9, make a change, press Update Labels and then ALT+F9 again to get it right...it's not easy to get the spacing right.
    11. Finally when it looks right, click from the Mailings tab click the Finish & Merge dropdown button.
    12. And click Edit Individual Document
    13. Select the All radio button and click OK.