> If the DL is so difficult to use, why is it still in the software?
DLs can be a lot of trouble to keep updated, especially since there's no way to know what contact is in which DL except by opening the DL. I recommend using them only for relatively small lists that rarely change.
Using categories to organize contacts opens the possibility of easily performing a mail merge to email, which will result in each person getting an individual message, thus more likely to get through their spam filter. Also, if you want to put someone into multiple category-lists, you make one change in one place, their contact record.

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Sue Mosher, Outlook MVP
Author of Configuring Microsoft Outlook 2003
http://www.turtleflock.com/olconfig/index.htm
and Microsoft Outlook Programming - Jumpstart for
Administrators, Power Users, and Developers
http://www.outlookcode.com/jumpstart.aspx
> What is the trouble in creating a distribution list? Names are added to a
> list. The list name is then used as the contact in the To: field. Seems like
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