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How do I make a mailing list for printing labels ?

I just started a home business and want to snail mail an announcment letter. How do I create a list of names and addys in abc order to print as labels and be able also to add more later and they will go in to the correct abc order ? I have Microsoft Word Works. Would it be a spreadsheet type ? never done one. I have Microsoft WORD Works, and I think it has less capabilites than just Word. ?

Public Comments

1. This is a link to a wonderful support page by Microsoft. I strongly suggest you print it, copy to a document, or whatever. It is 4 pages long but fully explains the whole process. How to perform a mail merge in Works 7.0 and in Works 8.0 http://support.microsoft.com/kb/832797