Whats happening is that the first set of NUMBERING (including sub numbering) i.e for 1.0 HEADING 1 is coming PERFECTLY as numbered. I hit "enter" at any level of numbering, word automatically puts the next number below that number. However for the rest of the headings such as 2.0 and 3.0, where there should be 2.1 there is 1.1, where there should be 2.2, its 1.2 and so on and so forth. Same for 3.0 and its numbering subsets.
With the numbered paragraphs shown above, there is no extra spacing between the paragraphs. That’s easy to fix. Go ahead and type out at least part of your first numbered paragraph, then go to the Page Layout tab and adjust the value of Spacing After in the Paragraph section. Still no extra space? There’s one more setting to check. Click the launcher arrow in the lower right-hand corner to go to the Paragraph dialog box, uncheck the box next to “Don’t add space between paragraphs of the same style.” Click OK. That paragraph and all the remaining numbered ones will have more breathing room.
Drag the number, which Publisher defaults to “1,” into place on the ticket. To change the sequence, such as to start with “100” instead of “1,” click the “Page Number” button again and choose “Format Page Numbers.” Click the “Start this section with” radio button and type the new number into the field. Click the “OK” button to have Publisher update the ticket number.
Starting an auto-numbered paragraph is deceptively simple. See those buttons on the top row of the Paragraph section of the Home tab? The left-most one is for bullets; the next two to its right are for numbering and multi-level numbering, respectively. Simply click the button to toggle the feature on, or click on the drop-down arrow on each button to select a specific style. If you don’t like any of the delivered choices, you can click Define New to set your own.
Thanks very much for your prompt reply, which reassured me that I was on the right path. From having read various Help topics, I suspected that I'd have to use an Excel data source for the numbers. Fortunately, my knowledge of Excel was good enough to know about the drag and drop facility to create automatic sequential numbering, so the data source creation was easy. In the end, it was the mail merge (no surprises?) which proved a tad tricky, but I got there in the end. I've used MM many times and quite happily in Word documents, but for Publisher label format, it was of course a bit different. The important bit that I had to discover for myself was the significance of, after getting to the Print stage, going into Print options, to Publication & Paper Settings, and selecting Multiple Pages per Sheet (& in my case, also "Single-sided" cos my default of duplex printing had come up). But TA-DA!  All is fine now. Thanks very much again.
Drag the number, which Publisher defaults to “1,” into place on the ticket. To change the sequence, such as to start with “100” instead of “1,” click the “Page Number” button again and choose “Format Page Numbers.” Click the “Start this section with” radio button and type the new number into the field. Click the “OK” button to have Publisher update the ticket number. numbering using indesign
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