When you merge to e-mail, you have 3 format choices:
a. plain text - the message contains plain text. Everything else is
discarded
b. attachment. The message body is blank. The document is sent as a .doc
format attachment (regardless of what format it started as, AFAIK)
c. HTML. THis option is only available in Word 2002 and later, and only
with Outlook, not Outlook Express.

The format of the original document is mostly irrelevant.

If you are using (a), that would explain the results.

If you are using (c), is the recipient getting the HTML text but /links/ to
the images which cannot be resolved (e.g. because they are links to your
machine or Intranet) ?

--
Peter Jamieson - Word MVP
Word MVP web site http://word.mvps.org/

opens perfectly with images and all, but when I send it out as a mail merge,
it disregards the images and sends text only.  Any help would be greatly
appreciated!!  David