Ren,
I had exactly the same problem, and can now get things to print just fine.
First, make sure your printer driver is Vista-enabled and the paper feed
options are correct for your printer.
Outlook needs to be started before attempting to print either labels or
envelopes.
When you press the buttom for the address book, be sure to press the button
with the book, not the down arrow beside it (the arrow puts some incorrect
info into the box until you have used it for that session).
I also had to go into the Contacts part of Outlook, open up each contact
(with an address) individually, and under the Address heading, click on the
home or business button. This shows the correct way to enter address fields,
so Word can read them correctly.
Hope this helps.
Ed