Word XP Mail Merge Not Finding Source

I have recently migrated to the Windows XP OS using the Office XP suite. Our network is also utilizing Active Directory to maintain security to servers and folders.
I have a Word merge document where the data source file resides on a remote server in a different office. When I open the merge document I receive the error message that “Word cannot find its data source”. The file does exist and I do have rights to access this file. If I choose to ‘Find the Data Source’ I can browse to the file and select but I still receive the same error message. If I use the Merge Wizard to locate the data source file on the remote server the document merge will complete. What is keeping the Word merge document from locating the source file on the remote server? I have run out of ideas.