Here are the steps for creating a booklet in Microsoft Publisher:
Create a new blank 11x8.5 (landscape) page
Under Page Design menu, open Page Setup
In the page setup screen, choose "booklet" from Layout type dropdown
4 pages will be automatically added
To add more pages to your booklet, click on the Insert tab and then select "page". Another 4 pages will be added. Pages in booklet must be divisible by 4!!!! Trust me.
To Print, choose Booklet, side fold (should be selected for you already). Then Print on both sides SHORT EDGE)