It seems that several HP printers including the 1300 series print the first page of labels ok, but other pages come out condensed. If that's the case for you, no matter what HP printer you use, try this procedure. It works for most people.
We are going to "install" an additional printer on your computer with basic HP laserjet settings that you will use just when printing labels.
Select Printers and Faxes from the Start Menu
Check the properties of the default printer and jot down the port address.
Click on the link to add a new printer.
Follow along with the wizard.
This could either be local or network, leave the default checked
Select a printer port. Browse and point to the same port you jotted down.
Install printer software. For Manufacturer select (HP) - Printers select HP Laser Jet 4 Plus.
Use existing driver. Make sure you Keep Existing Driver (recommended).
Name your printer. Something like HP Laser Jet 1300 labels.
Do you want to use this printer as the default printer - NO.
Printer sharing - Do Not Share This Printer.
Go ahead and print a test page.
Remember to select the HP Laser Jet 1300 Labels printer when you produce labels in the Reporter.