Mail Merge with MS Office / Word & Excel

I am using MS Office Outlook 2007 and MS Office Word 2007 SP2 MSO

License ID is 89409-707-1230233

Can I double check if you can do a mail merge to 1200 recipients with these standalone versions of MS office?

I have run the mail merge step by step guide, and used email messages as the chosen format under start email.  When Selecting Recipients, I used an excel file with a first name, Surname and email structure. I used the primary and secondary data Word and Excel files and this works perfectly merging the email template with the excel data file.

It runs through the check of adding the first name in the <greeting line section> and then it completes the 1200 count in Word. 

I have checked the Outlook sent folder and no mails have been sent an we have received no replies on the test emails.

Can you advise if the steps are correct? Do I need an email server or will the mail merge work on the standalone version?

Thanks 

Peter