Hi Liese,

A couple of points:
1. Mailmerge main documents really shouldn't be saved as templates - they're intended to be used as documents.
2. When you use a Mailmerge main document template, both the template and the document created from it look for the datasource (ie, it's looked for twice). Updating the datasource in the new document does not update it in the template. The only way to update it in the template is to specifically open the template for editing.

The simplest way to update the datasource is to answer 'No' to the SQL prompt when the mailmerge main document opens. That disconnects it from the datasource and turns it into a plain document. Then go through the mailmerge start-up process to re-attach the datasource. Once you've done that, save the mailmerge main document.

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Cheers,
Paul Edstein
[Fmr MS MVP - Word]