It might be easier to help figure out the problem if you could post the file as Brian mentioned. That way we can try to import it or at least determine if there is a problem with the file.
If you have an illustrator 8 file and it's not corrupt, you should get something when you do a merge...or even an open.
Just out of curiosity, how did you manage to go from a .gif to an illustrator 8 file? If you just placed the .gif in Illustrator and then saved it as an illustrator 8 file, it is still not a vector graphic. You would either need to convert it (via livetrace, redrawing it yourself, of finding an actual vector version) and THEN save it as illustrator 8.
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Tim Shetz
c4dtraining.com