Have you already added the Outlook Address Book service?
Tools- Account Settings...- tab Address Books

You can use the Mail Merge function in Word to create your envelopes with
contact information stored in Outlook.
See http://www.howto-outlook.com/howto/mailmerge.htm

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Robert Sparnaaij [MVP-Outlook]
Coauthor, Configuring Microsoft Outlook 2003
http://www.howto-outlook.com/
Outlook FAQ, HowTo, Downloads, Add-Ins and more

http://www.msoutlook.info/
Real World Questions, Real World Answers

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"Karen" wrote in message
...
How do I configure my contact list so that I can be used as a Word address
book? When I open properties box under Outlook Address Book the check box
for
"use this folder as an e-mail address book" is grayed out. I need to do
envelopes and insert addresses in Word docs.