Sounds like you've got a 'bad' contact folder flagged as an address book. Go
to the Tools menu > Email accounts > View/Change existing address
books/directories > Click Next > Highlight Outlook Address Book > Click
Change. Remove the 'bad' folder if you can tell else remove all of the them
and reset your current Contacts folder as an address book. You can do that
by right clicking on the Contacts folder, choosing "Properties" then going
to the Outlook Address Book tab. Check the "Show this folder as an email
address book" box