How can I create mailing labels from a spreadsheet of names and addresses?

I have an .xls spreadsheet of names and addresses. Can that be the source or do I need another? I want to print on standard Avery 5160 labels.

See the manual at it is fully described there. Basically,

1 create a spreadsheet with the names

2 register a database - this MUST be done even though the database is empty and never used

3 File > New > Labels