Mail Merge using Windows Live Mail problems

Short Question: Is there any possible way to use Mail Merge in Microsoft Office 2007 with Windows Live Mail?

Notes: Using Windows 7 computer. Windows Live Mail is being used as a program to send the emails out. Microsoft Excell is used to supply the email addresses. It is not an address book problem.

If it is possible to use Mail Merge through WLM, then my next question is:



Long Question: How do I fix my problem?

• I am using Microsoft Word 2007 to open a short document (.doc).
• I am using a Microsoft Excell 2007 spreadsheet (.xlsx) as a database for names and email addresses. [I have tried both .docx and .xls and all combinations of the 4 to try to fix this. None seemed to work, so I reverted to the files' original extensions.]
• I go through the Mail Merge steps without any issues. I can see the document. I can see where the merged names will be inserted. I can preview individual letters to see the names inserted correctly. I can also manage the contacts - and select which emails the Mail Merge should be sent to.
• As a test, I select only my name. I send out the Mail Merge to the emails as all 3 format options with the subject of "test".
• 2/3 (Attachment and ?) returned the following error message.
  
  Error Message said:

  Login Failed. You must log onto Microsoft Exchange to access your address book.
  Error Code: Unspecified Error.
  Microsoft Exchange is not installed on this computer, nor was it used in any way. Similarly the address book should be the Excell Document.
• 1/3 (HTTP) Nothing happens, but that also means no emails are sent out nor recieved. HTTP is the preferred way of sending out this message.
• 3/3 of the format options cause this error when closing Word:
  
  Error Message said:

  No Email Program associated to perform this task. Install email program or create an association in default programs in the Control Panel.
  WLM is installed, and has been associated with .eml, .vcf, MAILTO protocoll, and Send Mail command for MAPI (basically anything it says it can be associated with, it is).

I have looked up as much as I could on the error messages. The fixes all relate to
1) Installing Outlook (last ditch option - I would much prefer to get this functioning through Windows Live Mail).
or
2) Saving the address book. Not relevant here, as the addresses are already saved in the spreadsheet. I merely want to be able to send them out.

Thanks in advance for any help!