It took some trial-and-error to find the best methods for us, and that is what I will be describing here. In OOo there are lots of different ways to do mail merge.
Since this seems to be a sticking point for many people, I am putting everything I have learned from helping her and have gleaned from various sources on the Internet together in this tutorial. Our receptionist does a lot of general secretarial duties, including lots of letters, envelopes, and labels that involve mail merge.
The office where I am network administrator switched most users to (OOo) back at version 1.1, and has followed the upgrade process to the current version 2.3 (a few poor users who have to exchange documents outside the office with high fidelity are still clinging to their MS Office 97).
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