No feature like that is built in. You'd have to code it or use a third-party utility. See http://www.slipstick.com/addins/notify.htm

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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
> Hi - I'm wondering if someone modifies a Contact in a Public Folder, will
> Outlook generate an email notification to someone - similar to the Moderated
> Folder but the Moderated only seems to notify when you add a new contact -
> not just editing one. Thanks.