You forgot to add the Outlook Address Book Service to your profile.
http://support.microsoft.com/default.aspx?scid=kb;en-us;287563&Product=ol2002

Signature
Russ Valentine
[MVP-Outlook]
>I am using Outlook 2003 SP1 and cannot add my Contact items to my Address
> Book. If I right click the Contact folder and choose Properties, I then
> see
> that the Show this folder as an e-mail Address Book is grayed out with the
> check box unchecked. Nothing I can think of will allow me to change the
> setting. What should I do?