Hi accdev,

From microsoft.public.word.vba.general:
"Your MERGEFIELD should look something like:
{INCLUDEPICTURE {MERGEFIELD PicName}}
where PicName is the full path, filename & extension for the picture,
although these requirements can be reduced according to how much of the
path, fileextension are incorporated into the INCLUDEPICTURE field. For
example:
{INCLUDEPICTURE "C:/My Documents/{MERGEFIELD PicName}.jpg"}
or
{INCLUDEPICTURE "C:\\My Documents\\{MERGEFIELD PicName}.jpg"}

When you mailmerge document is saved with the above coding, it should not
update with the actual picture."

The problem you're describing with PSP at least partly suggests you have an
INCLUDEPICTURE pointing direct to a particular graphic, rather than
incorporating a MERGEFIELD as describe above.

Cheers