Addressee or name field doesn't appear when running conditional merge for acknowledgements

When using a conditional merge, a conditional mergefield value does not appear when using a previous saved letter that worked in Click-once application or in versions of Webshell prior to 3.0 SP8. 
This is an issue with the source document being used in the merge.  The reason this works in Click-once versus Webshell is due to different controls in each environment.  The webshell of CRM uses a rendering tool that applies more approriate standards to the merge logic than does the click-once application.  To acheieve the correct results in webshell, the document must be corrected. 

example of faulty merge logic: 
  {IF  {MERGEFIELD LAcknee_IsOrg} = "False"
    "{IF {LAckneeNmFmt4_RcptName} <> "" "{MERGEFIELD LAckneeNmFmt4_RcptName}"
    "{MERGEFIELD LAckneeNmFmr_PrmyAddssee}" "" }"}
   

example of corrected merge logic.  corrected portion is bolded:
  {IF  {MERGEFIELD LAcknee_IsOrg} = "False"
    "{IF {MERGEFIELD LAckneeNmFmt4_RcptName} <> "" "{MERGEFIELD LAckneeNmFmt4_RcptName}"
    "{MERGEFIELD LAckneeNmFmr_PrmyAddssee}" "" }"}   

Environment

 3.0.516 SP 9

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