I think the best choice is to do your mailing list in MS Word. You create a label layout in Word and use the MS Excel spreadsheet as the Data Source. There is a 3 step wizard to help.

In very general terms:
-Start Word
-Click on "Tools" then "Mail Merge"
-In Step 1, Create "Mailing Labels"
-In Step 2, choose "Open Data Source" then locate your Excel file
-In subsequent steps you will indicate the label format and assign fields (ie. name, address etc.)
-In Step 3, you will actually perform the "Merge"

You will probably have to go through the process 2 or 3 times until you get exactly what you like. The nice thing about using Word is that you have complete control over all aspects of the label format.

P.S. When I started to type this, there were no responses. By the time I was finished, Andrew and Ralph had already posted responses. I've got to learn to type faster!