Can anybody recommend some good software suitable for compiling Christmas card lists and addresses. One that could print labels / envelopes and is compatible with other address books such as Outlook would be good

What's wrong with using Outlook? You could use your Outlook Contacts as the datasource in a mail merge with Word to produce your labels. Set up a category for Xmas List and add anyone you want to send cards to to that category. Then you can filter the Datasource in Word. For just those people.

Thanks that is the conclusion I thought would be best, however I am not ever so familiar with all the features of Outlook. Can you tell me how to set up individual categories
Regards
Lou

On a Contact form is a button (near the bottom) for Categories. Open then button and use the Master Category List to add additional categories.