JoanB wrote:

I wanted to migrate all my contacts over to the new (2007) Outlook
pst file and having been warned about using Import, I followed the
suggestions to just open the old contacts folder and select and copy
all the contacts to the new 2007 folder.

I opened the Contacts folder in the old pst, selected all the
contacts, and copied them to the Contacts folder in the new Outlook
2007 personal folder. They copied just fine, except that what I ended
up with was two (2007) Contacts folders - one being a subfolder of
the other.

Sounds like you copied the folder itself. You should have copied only the
items in the folder. It's not too late, just copy the contents of the
subfolder up a level.
--
Brian Tillman [MVP-Outlook]