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A multi-level list is a list that describes hierarchical relationships between the list paragraphs. These lists are also called outline lists because they resemble outlines. The list’s numbering scheme (as well as indentations) show rank as well as how items are subordinate to one another. You can tell where each paragraph fits in the list with respect to the paragraphs before and after it. You can include up to nine levels in a multi-level list.
A List Style creates a set or group of styles. Word comes with built-in paragraph styles named Heading 1, Heading 2, Heading 3. But there is no connection between them. They just happen to share similar names. A List Style 'groups' those paragraph styles into some order. Only the List Style knows that Heading 1 is followed by Heading 2 and that it is followed by Heading 3. There are 9 levels in any List Style.
One of the easiest ways to begin applying numbers is by starting to type a numbered list. Word recognizes that you are creating a list and responds accordingly by converting text that you type into numbered items. The number scheme, delimiter characters that mark the beginning or end of a unit of data and formatting are all based on what you have typed.

A multi-level list is a list that describes hierarchical relationships between the list paragraphs. These lists are also called outline lists because they resemble outlines. The list’s numbering scheme (as well as indentations) show rank as well as how items are subordinate to one another. You can tell where each paragraph fits in the list with respect to the paragraphs before and after it. You can include up to nine levels in a multi-level list.
Another fan of Fusion Pro Desktop here. This is exactly what you need. We have sold both PrintShop Mail and Fusion Pro Desktop for this very application (numbering) and other VDP applications. Fusion Pro Desktop easily beats PrintShop Mail from both a price and performance viewpoint. You could also try Printer's Bench http://www.elkriversystems.com/ProductsList.aspx for a good entry level package
Understanding outline numbering and how outline numbering interacts with styles is crucial to your success in using Word with legal documents. Basic outline numbering can be handled much the same way as bullets and numbering. Seven default outline numbered lists come with Word. Three of the lists format the paragraphs with outline numbers. These lists are in the top row of the dialog box. The remaining four format the paragraphs with outline numbers and apply heading styles to the paragraphs and can be found in the bottom row.
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.
i’ve had to do tons of this lately and found that for the amounts of tickets being done (e.g. 7000 x 10 tickets + cover & mailer) that chuckT’s solution almost 2 years ago is similar to what i use. would be interested to know if others doing similar VDP are using a wholly indesign/excel solution, or if specific VDP software such as XMPie are being used.
Changing the numbering display affects how pages are indicated in the InDesign document, as in the Pages panel and in the page box at the bottom of a document window. The numbering display also affects how you specify page ranges when printing and exporting the document. However, the numbering display does not change the appearance of page numbers on document pages. numbering in indesign
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