I don't have GroupWise here, and nor, as far as I know, do any of the other
regular contributors. (I tried to set up a GroupWise testbed a couple
of years ago to find out how if it could work with MailMerge but ran out of
steam) but
a. Word needs to use the MAPI standard interface to send e-mails.
b. I believe GroupWise is still MAPI-compliant
c. if so, in theory, it should be possible to make this work.

However,
d. you may need to make configuration options in GroupWise (e.g. in a
settings dialog somewhere) to enable MAPI

(I looked at the GroupWise Knowledgebase on the Novell site and someone has
reported an error titled

"Unable to send html documents in Groupwise using MS Word 2003"

While this may seem rather negative it does suggest to me that it is
normally possible to merge from Word to GroupWise)

So...
I would start by
a. ensuring that you are not trying to merge to HTML format e-mail (you
should see a drop-down list of three choices - HTML, plain text (you lost
formatting and graphics) and Attachment - when you select the merge to
e-mail option)
b. ensuring that GroupWise is your default e-mail client program (e.e. if
you are using IE, look in Tools|Internet Options|Programs)
c. looking through GroupWise configuration options for MAPI support
and see where that leads.

If you do find the answer, please post back here.

Peter Jamieson