The data file issue is the same as that shown in the Excel data section of
http://www.gmayor.com/mail_merge_labels_with_word_xp.htm which also gives
the fix.
As for Outlook, you will need to start your merge from Outlook which
provides extra merging tools see
http://www.gmayor.com/mailmerge_from_outlook.htm
Both pages currently use Word 2002 dialogs, but the issues are the same for
2003.

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Graham Mayor - Word MVP
E-mail gmayor@mvps.org
Web site www.gmayor.com
Word MVP web site www.mvps.org/word
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> Following an update from office 2000 to XP Pro 2003
> Suite, I'm having trouble doind a mail merge. My OS is
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> need to start over?
> thanks for the help if you understand this probem!