Thanks Dmitry,

Your suggestion and creating the distlist member with the name (instead of e-
mail address) solved the problem! For the benefit of the community fix is:

using Outlook = Microsoft.Office.Interop.Outlook;

Outlook.Folder olFolder = olParentFolder.Folders.Add("AContactFolder",
OlDefaultFolders.olFolderContacts);
olFolder.ShowAsOutlookAB = true;

Outlook.DistListItem olDistList = olFolder.Items.Add(OlItemType.
olDistributionListItem);
foreach(contactName in contactNameList)
{
Outlook.Recipient olRecipient = olFolder.Session.CreateRecipient
(contactName);
if(olRecipient.Resolve())
{
olDistList.AddMember;
}
}

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