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I tend to agree with most of the responses here. Print your letterhead and then print the content on the letterhead paper. But if you absolutly need to do this specifically if you need to send an electronic version of your letter head via .pdf or fax using a pc. then try the following options.
The following instructions will vary depending on the version of Word you are using. For Word 2002 do the following:
Change a background or watermark
Backgrounds are displayed in Web layout view only and aren't designed for printing. Watermarks are intended for printed documents.
Change a document background
You can apply a different color, apply a texture or picture instead of color, or change settings for patterns and gradients.
On the Format menu, point to Background.
Do one of the following:
Click the new color you want.
Click More Colors to see additional color choices.
Click Fill Effects to change or add special effects, such as gradients, textures, or patterns.
Change a watermark
On the Format menu, point to Background, and then click Printed Watermark.
Do one of the following:
To change pictures, click Select Picture.
To change picture settings, select or clear the options you want under Picture watermark.
To change text, select a different built-in phrase or type in your own phrase.
To change text settings, select or clear the options you want under Text watermark.
Tip
If you inserted a watermark into the document header, and you did not use the Printed Watermark dialog box, then you should view the header, and then make the changes you want to the watermark text or graphic.
After doing this you Need to save the document as a template ".dot extension". You can do this by clicking on Save As.
Michael
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