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I don't really know much about Flash, but I did do quite a bit of work some years ago with mail merge in Word. If you just want to do a one-off merge of (say) addresses from a spreadsheet or database to a bunch of labels or standard letters, it works OK (and there's a wizard to guide you through it), but trying to automate the process so that it could be run as part of a larger application was a nightmare that I wouldn't want to revisit. We were trying to set up a client-server app with the mail merge master documents stored on the server. When it worked, it was fine but all you had to do was breath on it and it would break.
Of course, that was in Word 97, so things may have improved in later versions. In Word 2002 onwards (so I understand) you have the option to merge to HTML, which you then might be able to pick up in Flash? Dunno - just guessing about that bit.
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Religion: It's all fun and games until someone gets burned at the stake...
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