Creating a catalog with excel and InDesign CS6

Help! Why can't it be as easy and importing an MSWord Doc? I've been reading about data merge and XML and both are just not working for me. I'm probably doing something wrong. Right now. I'm just trying things out to figure out the best way to execute. When the live text is ready I will have up to 5,000 skus to place in up to 200 pages. I'm using InDesign CS6 - My templates are done, text boxes are linked and style sheets set up. I need to figure out a way to import the excel doc with the columns that I need, in the order I need and somehow (hopefully) styled accordingly. I'm more concerned with the text than the images, so I can import the images on my own.
With Data merge, I'm noticing that it won't work with linked boxes..the text is styled but it won't flow from one linked box to another. With XML - I think I'm close, but when I have the tags in place, will only allow me to import one story at a time.
Anyone have experience doing large catalogs? What can you suggest?
Thank you in advance for your help!

Your observations above about Data Merge are correct. It's probably not appropriate for this job. If you do a lot of catalog work, investing in one of the commercial catalog plugins would probably be a good idea.

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