Typo in there somewhere... this works.  Basically, if you don't have a join between the tables (or explicitly state a CROSS JOIN), you get all possible combinations of the values...

Not sure if i have this right, but end goal is to have

red 1 year old car
red 2 year old car
red 3 year old car

Seems like if you had a parameter, you could hide the ones that aren't selected.
Just set the Visible property to a function.
Something like IIF(Parameters!ShowWhich=1,True,False) and modify them for...

Shame about not being able to use linked servers, because I think the answer might be to do a UNION of the two tables inside a stored procedure, and then...

Put a page break after the first tablix?

Without sample data, it's a lot harder to answer your question.  Since you're new, please read Jeff's article on how to post a question - he outlines how to ask...

Yuck. Sounds like a terrible idea.
What does your indexing on the table in question look like?

Brian Larson walks through a scenario like this in his SSRS 2012 book.
After some Googling...
http://blogs.lessthandot.com/index.php/datamgmt/dbprogramming/mssqlserver/creating-mailing-labels-in-sql/

To the OP - posting your data as attached spreadsheets is a less than ideal way of posting your problem. Please read Jeff's article on how to post...

Without sample data (CREATE TABLE and INSERT scripts), there's no way for us to test your query for you. So all we can give you is reasonably educated guesses. If...

Your parentheses look wrong.

SELECT x.*
FROM 
(     SELECT a
       FROM table1
       WHERE...
  UNION ALL
       SELECT b
 ...

Hard to argue with Jeff's advice.  Maybe spend a week on just text functions and do a whole lot of them. Start easy and then make them more complex as...

Use REPLACE()