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To make your contacts available through the address book in Outlook, follow these steps (it may seem a little complicated, but you only have to do it once).
1) Select Services from the Tools menu
2) Click the Add button
3) Select Outlook Address Book from the list and click OK (a message appears telling you that you need to restart Outlook for the changes to take effect)
4) Click OK and close Outlook (make sure that no part of Outlook is open such as a Note or email)
5) Open Outlook again
6) In the folder list (if this is not visible, select Folder List from the View menu) right click on the contacts folder
7) Choose properties and select the Outlook Address Book tab at the top of the dialog box
8) Click in the box which says Show This Folder As An Email Address Book and click OK
Now your contacts will be available through the address book and can be used in exactly the same way as any other email address. To test this, go to the address book from your inbox and select Show Names From The. You will see the Outlook Address Book with your contacts folder inside it.