I cannot use the default Outlook 'Contacts' folder as an e-mail address book. In the tab 'Outlook Address Book' the option to use it as an e-mail address book is unchecked and grayed out.
To access your Contacts folder as an Addressbook you need to configure an Outlook Addresbook account.
Outlook 2003: Click Tools > Account > View or Change existing Addressbook
accounts. Click Add > Additional Addressbook types > Outlook
Addressbook.
Outlook 2007: Click Tools > Account Settings > Addressbook > Click New > Additional Addressbook types > Outlook Addressbook