Question : Hyperlinks with merge fields lose the reference to the merge field after save in word 2007

I am trying to create a hyperlink in Word 2007 that references a merge field to provide the location of an image. When I insert the hyperlink it looks as follows:
{HYPERLINK {MERGEFIELD "PHOTO"}}
However when I click save and reopen the file the merge field no longer appears and all I see is
{HYPERLINK}.
When I merge the letter none of my photos print as a result of this.

This works fine in word 2000 and word2003. If I save as a word2003 format it still works ok, but if I save as a DOCX then the merge field gets removed.

Any help with this would be appreciated. It seems like this is a known issue but the other solutiions I have seen do not seem to apply to what I am doing or work for me.

Answer : Hyperlinks with merge fields lose the reference to the merge field after save in word 2007

You should not be inserting the picture itself from what I am reading...

As I said above, go to Insert, QuickParts, Field, and select INCLUDEPICTURE.   Click OK.  Then, press Alt-F9 to view the field codes and insert your mergefield at that point.

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