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If you uncheck "insert personalised salutation" and go to "general salutation", you can edit the general salutation (I usually take whichever one is showing - say the "Hello" salutation and delete it and add what I want).

Then type in (for instance)

Dear <First Name>,

and the preview box below will show you what will go into the merge. To make sure you type the correct field name between <>, hit F4 to show your data above the document, and use the field name from the top of the address list.

Hope this helps!