By default Impact's document merge merge engine uses standard formatting for YES/ NO fields in ACT! These field will look formatted as such "0" or "1". You can change the formatting rules globally by modifying a configuration file.
1) Close ACT!
2) Go to START - Durkin Impact v4 -> Durkin.Common.DocEngine
3) Edit the file "Generic.v4.Config.xml" using NotePad.exe
4) Find this section and change the value from TRUE:FALSEto YES:NO
5) Save the changes then restart ACT!