The Envelope Address style includes a frame. By default, the frame is 5.5"
wide, and the paragraph has a 2" indent, which should allow 3.5" for the
address. It would appear that your Envelope Address style has been modified
in some way. The easiest way to fix this might be to reset it. Go to the
Style dialog (how you get there will depend on your version of Word, which
you haven't mentioned), select "Styles in use," select Envelope Address, and
click Delete. This will reset the style to its default formatting.
Alternatively, you can modify the style. Again, how you do this depends on
Word version, but see
http://www.shaunakelly.com/word/styles/ModifyAStyle.html
--
Suzanne S. Barnhill
Microsoft MVP (Word)
Words into Type
Fairhope, Alabama USA
http://word.mvps.org