From an MS Forum: ODBC operates at a low level, it doesn't "know" about Access forms. You can use DDE instead of ODBC to connect to the database, although it's somewhat flaky:
In Word 2007, click the Office Button, and then click Word Options. On the Advanced tab, go to the General section. Click to select the Confirm file format conversion on open check box, and then click OK. When you select the Access database as data source for your mail merge, the Confirm Data Source dialog box will be displayed. Select MS Access Databases via DDE (*.mdb, *.mde), then click OK. Proceed as usual. Or find a way to do without the parameter.
From SO The path to you ODBC database is configured in your ODBC settings. Where this is updated for Office 2007 depends if you have a 32 or 64 bit OS.
If you have a 32-bit OS use the Database Sources (ODBC) under Administrative Tools
If you have a 64-bit OS use Database sources (ODBC) from c:\windows\SysWOW64\odbcad32.exe
Office 2007 is a 32 bit application and can only read 32-bit ODBC data souces. Using the settings under Administrative tools on a 64-bit machine sets ODBC for 64-bit applications. Confusing I know.
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