Watch Can Grow, Shrink. If you have a LABEL next to an empty text box, it will not shrink.

Have you also set Can Grow/Can Shrink of the section to yes?

I've got a label above the record fields. But nothing next to it.  I actually watched that Can Grow, Shrink video.  
If I set the section properties Can Grow and Can Shrink to yes, I actually lose the last city, state, postal code line.  Not sure what's going on here.

Post some screen shots of design view and print preview.

I've tried the TRIM function, but that only takes out extra spaces before/after an entry. This also seems to delete or mess with the first word in the second address line: Work Address Line #1. This screenshot (in Design view) at least shows what I'm trying to do. I want to shrink the ATTN lines (the first mailing address line) for the addresses that don't have an ATTN line, which are about 80 percent of them.  
I can't post Print Preview snapshot b/c report has personal info in it, which I don't want to post on the Internet.
Ideas?  
--Kent J.

Are your fields perfectly sized and aligned on your Report?

Are you able to insert a dummy record and show that in Print Preview?

I see you've got Layout enabled for some of your controls. Get rid of that. It's evil. That could be causing them not to shrink up. Not sure. Haven't used Layout in years because... it's evil.

And you do realize the control that is selected has Can Shrink set to No, right?