We use a tractor feed printer for labels and in order to define the proper
paper/lable size, In Windows XP, I defined a new form size:
Go into your list of printeres (in classic mode: Start, Settings, Printers
and Faxes)
Choose FILE, Server Properties.
Define the specs you need for your label if not already available.
I created one 4x3 label with: paper size 4.75 inches wide, 3 inches tall
Say ok to save your new paper definition.
Then in your printer properties, define that paper as the default setting
for the printer (instead of letter).
You may also need to open your file (I use Excel), and manually switch to
that printer and choose that paper choice in the printer properties. Once
saved, that paper choice stays for that printer and the labels print
properly, moving up only enough for one label at a time.
-Sam