I had already seen this article actually. It says (in part):

Step 2: Mark your contact folder for use with your address book
1. On the File menu, point to Folder, and then click Properties for your
folder name.
2. On the Outlook Address Book tab, click to select the Show this folder as
an e-mail address book check box, type a descriptive name, and then click OK.

As mentioned in my original post when I go to step 2 (2.) the "Show this
folder as an e-mail address book" check box is dimmed/greyed-out and
therefore unclickable. This is my problem!

"Gordon" wrote:

"Dell-boy John" wrote in message
news
1 In the main toolbar the Search toolbar requires that there be address
books to search. I found the Search routine invaluable within Office XP
as I
have a reasonably large number of contacts.
2 When creating a New e-mail Message, clicking on the "To.. " button
fails
to bring up a list. In fact the "Select Names" dialog is conspicuously
vacant.


Ah. a slightly different scenario.
Have a look here.
http://support.microsoft.com/kb/287563