Help on this problem please..

I am doing maintenance on a VFP 5.0 program that prints labels. One of the available labels is an Avery 4146. Whenever the user prints the labels, it prints 7 and then ejects 1/2" to the top of the next supposed page. The labels are 1 1/2" high so 7 of them make 10 1/2", so I assume the printer thinks this is an 11 inch piece of paper. I hooked up an Okidata 321 and tried and sure enough after 7 labels it kicks ahead 1/2". I went into printer set up to try and change paper size but to no avail.

Thanks for the help.

Bob