You certainly can nest one field inside another - one thing you can check is
to turn on the merge preview, then use Alt-F9 to display the full code of
the INCLUDETEXT field, then select the nested MERGEFIELD field, right click,
and select Toggle Field codes. You should then be able to see the full path
name of the file that the INCLUDETEXT is trying to include. I would check
that all the backslashes are doubled up (i.e. use c:\\xyz\\abc.doc insted of
c:\xyz\abc.doc) and that there aren't any extra spaces in the path name
(they are rather easy to insert accidentally).
You may also need to uncheck Word Tools|Options|General|Web
options|Files|Update links on save.
The problem with the INCLUDETEXT command is that the main document I am
using also has a few graphic images in it and so INCLUDE TEXT doesn't
appear
to pick up the images?
It should do, but can you confirm that it is the included document that
contains the images, not the "mail merge main document", i.e. the one that
is attached to the data source and contains the images. Assuming that it is
the included document that contains the images, try the simple case where
you open a new blank document and use Insert|File to insert the whole
docuument, clicking the dropdown on the Insert button and selecting Insert
as link.That should insert an Includetext field, and you should be able to
select it, press F9 to update it, and still see the images. I've just done
it here. But if you don't see the images, there could be a memory problem or
some such.
Peter Jamieson