Printing images in Word Merge Documents

Try an INCLUDEPICTURE field. Here is a tutorial. Note the instruction that a bug in Word will prevent this from working if you save as docx instead of doc. Or you may need to put some VBA in the document that runs after the merge executes and forces an update on all the fields. INCLUDETEXT and INCLUDEPICTURE fields are not good about auto-refreshing. Something like:

Sub UpdateFields()
Dim oFld as Field
For Each oFld in ActiveDocument.Fields
	oFld.Update
	oFld.Unlink
Next
End Sub

Or you can refresh manually with Ctrl-A, then F9