Error message whilst tying to do a mail merge

[Tango]

Hi,

Im using crm 4 & trying my first mail merge.

To keep things simple I have a letterhead (with an image in the header)
saved as an xml file. Ive selected no fields & try to run a mail merge for an
account.

After i select template I get error message

Runtime error c:/program files/internet explorer/iexplore.exe

the application has requested the runtime to terminate it in an unusual way

also occurs when I select the template that is preinstalled.

thanks in advance