The problem is with your field coding. Whereas I said you should code it as:
{IF{=MOD({MERGESEQ},2) \# 0}= 0 {QUOTE 12}}
you've used:
{IF{=MOD({MERGESEQ},2) \# 0}=0 {QUOTE 12}}
Note the space after the '=' in my code! It's the little things that make all the difference...

__________________
Cheers,
Paul Edstein
[Fmr MS MVP - Word]