I'd check the Print Address 4 field and the text to the right of the >> for any invisible characters such as a space or return character. Those will keep the bottom line from sliding all the way up against the Print address 3 line (assuming that field has data...).
Following the posting of my inquiry I kept tryng to solve the problem on my own, until I realized that I had run out of ideas and was down to trying the same strategies over and over. Obviously I was overtired and I had hit bottom.
But then I remembered that the same layout existed in another database, one I had used before, with no problem. So I copied that set of fields, and pasted it into the layout (as shown below) for the file I needed to use. The gap problem disappeared, and I was able to continue with my real work, namely printing labels, not troubleshooting.
There has to be a reason that second set of fields pasted into the layout works correctly, while the first set did not. I cannot see any difference between the two sets.
A possibly unrelated problem I am having with the second set is that it exists as a "block", as indicated by the fact that there are only four selection points keping the five merge fields together. I don't know what I did for that to happen. They do not appear to be saved as a group, if I check the dropdown under ARRANGE, but they seem to be locked together somehow.
In the second example. you have a single block of layout text. In the first, you have 5 blocks of layout text.
Imagine if you type this in:
You could click the text tool, type in apple, press return, type in Orange, press return, type in lemon. You could also click the text tool, type in Apple. Click the text tool again, type in Orange, click the text tool, type in Lemon. Both will look the same on the screen, but the first is a single block of text and the third are three individual text blocks.
As I said in my last post, you have an invisible character in the preceding block of text. This can be a return or space character entered in the field or it can be text entered after the Address 4>> text. This invisible character will keep a minimum of one blank line when you try to get your layout objects to slide up.