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2: Envelope Options A Size 10 envelope fits a sheet of paper folded in thirds. This is a standard business size. There are other sizes on the drop down list. When you click on OK, MS Word will automatically format the layout and margins of your document to fit a Size 10 business envelope. Keep going...   Gotcha! By default, Word is looking for a database (.mdb) file. You need to change Files of Type to Excel.

Mailings -> Start Mail Merge ->Envelopes