If by "merge letters" you mean you want to perform a MAIL MERGE (taking the same letter and sending it to a bunch of people) then I haven't covered that for Word 2007 yet. I do cover it in my Word 201 course for Word 2003, but it's a little different. I'll be getting to Mail Merge for Word 2010 very soon - which is very similar.
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Word 2007 Basic 1.