I find the Word (Office 4 Mac 2011) seriously flawed in creating labels in WORD from Excel database; any comments?

I have used the "mailmerge" functions in Snow Leopard with Office 2004 on many previous situations.
With Mountain Lion and Office 2011, I am not finding success in using "mailmerge" to create labels using WORD and an Excel database. 
All is well until Mail Merge Manager asks:
          get Recit List
          Convert file from .......
          "choose Excel Wowrkbook"     (I have chosen each of the listed choices with same result)
          ALERT  reads  Excel Workbook text converter     check OK if from trusted source
          ALERT  reads  There was an error opening the file.
I have checked with the Microsoft online instructions and followed them to the "letter";  with the same disappointing results.

I have always exported the addresses to a comma-delimited file first, then merged. That may be worth a try.

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