You cannot use an IF field this way in a mailmerge. That's because the first thing that happens when the merge executes is that the IF field gets evaluated and converted to its result. What you can use instead is a numeric picture switch in a formula field!
Try:
{={SECTIONPAGES}-{PAGE} \# ";;'{INCLUDEPICTURE "d:\\signature.jpg"}'"}
Note: you probably don't need the '\* MERGEFORMATINET' switch.
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Cheers,
Paul Edstein
[Fmr MS MVP - Word]
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