The recent upgrading of MERLIN has resulted in a much improved array with both increased sensitivity and higher angular resolution. At L-band and higher frequencies the array is now operated in a manner similar to the VLA with routine phase calibration every few minutes using a nearby compact source. An automatic data analysis “pipeline” has been developed using AIPS software. This enables MERLIN data to be routinely processed to produce images in all Stokes parameters and with positional accuracy much better than the size of the restoring beam.