Is it possible to have cascading template updates in Word 2007?

Is it possible to have cascading template updates in Word 2007? This is potentially a very simple question, but I'm trying to create a letterhead template for work that will be used on dozens of different mail merge letters.
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Guest [Entry]

"As indicated by Dennis Williamson in a comment, linked documents were what I was after.

After creating the letterhead, I went into my individual letters and did the following:

Go to the ""insert"" tab.
Expand ""Object""
Click ""Text from file""
Select the letterhead
Expand the ""insert"" button by clicking its arrow
Select ""Insert as link""

Doing that, a field is inserted in the document that simply links to the letterhead. Whenever the letterhead is changed, updates cascade down to sub-documents."