I just wanted to pass this along as it ended up being such an easy change and it appears to be working well.

I had a client who wanted their company logo to appear on the mail merge but didn't want to use Microsoft Word. Initially this appeared to be rather challenging as the user wasn't going to edit source html.

I did some reading at http://docs.ckeditor.com/#!/guide/dev_toolbar

I noticed that in theirs they have an image button, that is missing from the Sage CRM version of the tool. Using a KB article referencing a config file I found that if I edited the config.js in the wwwroot\ckeditor folder and edited this line adding 'Image',

{ name: 'insert', items: [ 'Image','Table', 'HorizontalRule', 'SpecialChar', 'PageBreak','Maximize'] }

that on the screen after an IIS reset I was able to add a link to an image in my mail merge document.

I was able to add the image link and then merge to Word with the image. Maybe there is another way that I don't know about as I searched the community and could fine nothing about adding an image to a merge to word function so I thought I would share this.