There's a nearby cpnversation about a similar problem (although it's to do
with Office 2003) titled "html mailmerge using outlook contacts does not
work" . It may be worth havng a look at that and trying some of the
suggestions in there. However, I'd also suggest that since Office 2007 is
new, you file a proper support incident with Microsoft (e.g. via their
websitte) and get them to look at it. It's just volunteers in here, and this
particular problem comes up often enough that Microsoft should pull their
fingers out and research it, in my opinion.

Peter Jamieson