1. Open Word and Create Avery labels (in word 2010, New > Labels > )
2. Create your word document
3. then import the word document or form or template into Infopath (mine is 2010)
http://social.msdn.microsoft.com/Forums/en-US/sharepointinfopath/thread/bf394f8f-dfd6-4525-8ba4-a08c9f5b86de