Hi Tamar,
I appreciate all your help and I'm at my wits end. This is my code in a nutshell:

oWord=CreateObject("Word.Application")
oWordobj="oWord.WordBasic"
WITH &oWordObj
.FileNewDefault()
.
.
Processing
.
.
lcDSN="DSN=Visual FoxPro Tables;DBQ=C:\;DefaultDir=C:\;DriverId=536;UID=admin;"
lcSQL= "SELECT * FROM "+lcData
.MailMergeOpenDataSource(lcData,0,0,1,0,"","",0,"","",lcDSN,lcSQL,"")
.MailMerge(1,0,0,"","",0,1)
.FileSaveAS("abc.doc")
ENDWITH

Thru tracing I found that the value of .MailMergeMainDocumentType defaulted to -1 but then changed after the OpenDataSource statement to 0. Additionally, when I tried to use the code .mailmergetodoc, I got an error that the file has no merge fields in it! But when I try to fax or email to a client they can't open the file because it seems to be connected with the data source! Help. (and Thanks.)
Shuli