Labels for mail merge... anyone solved this yet?

I don't seem to be able to make labels on any existing Avery sheet labels. 3.5" x 1.75" doesn't seem to exist in the US.
I tried to create a label template in Writer, but the formatting seems impossible to fit to any tight label size, even if just one-up.

I miss this from Goldmine, though I prefer Zoho for most things.

Any suggestions? I really want to keep the label making within Zoho if at all possible.

Thanks,
-Paul