I upgraded from 2000 to 2003, pointed to the correct PST
but now the contacts are only listed under the Contacts
button and are not displayed in the address books under
the group.

I remember a similar issue in 2000 but there as an option
that configured entries in contacts to appear in the
address book.  I have looked everywhere and cannot find a
similar option.

Any help would be appreciated.

BTW, I don't know about you, but I think 2003 is a
nightmare.