Making target stickers for students using spreadsheet data and mail merge

1. I would like to create a word 2007 .doc that consists of labels or a table.
2. In each label / box I would like to use mail merge to copy data from a excel 2007 spreadsheet and
3. create a series of labels each with the same headings but different data.
4. Here is an example of the type of spreadsheets I have been using.
5. http://www.letsbeinventive.co.uk/wp-...-Drop-Demo.png
6. Each sticker would have the relevant unique student data after the column heading
7. I have tried the tutorials on youtube and the web and can use the edit recepients to select from a saved and closed excel file like the example above
8. But I cannot get the the 'insert merge fields' to show the same headings as the link I have given.
9. This is the software for excel layout I am using
   http://www.fabian4.co.uk/images/labels/dialog7.gif

Please can you help?

THANKS