It is usually feasible as long as Word knows how to insert the type of
picture you have (.jpg etc.), but there are often problems.

To insert the picture, try using a nested INCLUDEPICTURE field such as

{ INCLUDEPICTURE "{ MERGEFIELD picturefilename }" }

where picturefilename is the field containing the picture file name, and the
{} are inserted using ctrl-F9.

You may also need to
a. double up the backslashes in the picture path names in your database
(although off the top of my head, I don't think you do)
b. check Word Tools|Options|Print|Update Links/Update fields
c. uncheck Word Tools|Options|general|Web options|Files|Update links on
save
d. use the \d switch, and possibly the graphic converter switch in the
INCLUDEPICTURE field (see Word help for details)

Peter Jamieson