Word Letter Merge - modifying the case

Our customers have their names stored in uppercase for various reasons.

When doing letter merges it looks bad to have:

Dear JOE SCHMOE,

Please find enclosed your requested....

I tried setting the field (in Word) to "Title Case" which, from the word help, should result in "Joe Schmoe" - however after performing the merge this is not the case.

I also came across this article which states I should be able to add "\* Caps" to the field ID to achieve the same thing; it also fails to have any effect.

So I'm wondering if any of you out there have found a trick to modify the formatting of the merged data in a Letter merge?