When you browse to the data source and press OK, you are prompted to find the data source again.

This behavior will occur if the data source is a text-based file located on a network drive, and your Local intranet security settingsĀ  DO NOT trust the data source.

To workaround this problem, use any of the following:

Trust the location:

1. On the Internet Explorer Tools menu, press Internet Options.

2. Select the Security tab.

3. Select Local intranet and press Sites.

4. Check any/all of the following, if appropriate, and press OK (or press Advanced to add the Web site that contains your data source):

Include all local (intranet) sites not listed in other zones.
Include all sites that bypass the proxy server.
Include all network paths (UNCs).

5. Press OK and OK.

Locate data source locally:

1. Move the data source to a folder on the Windows Server 2003 computer.

2. Attach the local data source to the mail merge main document.

NOTE: You can also use Windows 2000 or Windows XP as your desktop.