This is the step in which the data source is linked into the Word document.

As you can see there are three options for this: Use an existing source, Use Outlook contacts, and Type a new list.

I would caution against using the 'Type a new list' option as the list it creates can often be difficult to manage.To use the Outlook contacts, you must already be using a Microsoft Outlook address book, so if you do not already use Outlook for your e-mail, then this option will not work for you.

This leaves the first option, using an existing list. This is why I'd already entered the data I wanted to use into a spreadsheet before I started the mail merge process.

In order to tell Word where the data source is, click 'Browse.' Navigate to the folder where your data source is located and double click on its name to select it.

Because there are two worksheets on the spreadsheet that I selected, the following window pops up, prompting me to select one.

Since my data is on the worksheet called "donors 2006" (click here to see the spreadsheet), I select that one. As I have column names in the first row of my spreadsheet, I also make sure that the 'First row of data contains column headers' box is checked before clicking OK.

After selecting the tab that has the data source, another window pops up to confirm the mail merge recipients. If there is someone on the list that you know you do not want to receive the letter, then you can uncheck the box next to that person's row. However, in this case, as with most cases, I want all of my recipients to receive the letter, so I will just click the 'OK' button.

At this point, instead of 'Browse', the Mail Merge Sidebar now tells me the tab name and data source where Word will be getting the merge information. If you accidentally select the wrong source, or if you want to change sources at a later date, you can click 'Select a different list' and browse to it in the same way you chose the first source.

Clicking 'Edit recipient list' will bring up the Mail Merge Recipients window from above. This will allow you to remove a specific record or just double check that you selected the correct set of data for your merge.

Once you are sure that you have selected the correct data source, then click on 'Next: Write your letter' to go to the next step.