Hi Nick,

to insert a picture in a mailmerge, you could use an INCLUDEPICTURE field,
with the picture's name being sourced from a mailmerge field that you embed
in the INCLUDEPICTURE field. Depending on what you're doing, the path could
be hardcoded in the INCLUDEPICTURE field, or you could add that too as part
of the mailmerge.

There have been numerous posts in this forum about the technique.
Check out http://www.gmayor.com/mail_merge_graphics.htm too.
A google search should turn up some more useful links.

Cheers