[mso] Outlook addresses

One of my friends is using Outlook 2003 and has this problem. He wrote a 
large number of addresses in a subfolder (for want of a better word) in 
his contacts list. He now wants to make smaller subgroups (contact 
lists)  within this folder. In trying to help him I understand the 
following: Subgroups (or mailing lists) can only be made when the e-mail 
addresses are in the main contact list. How can I help him solve this 
problem without him having to retype all hi addresses again.
My idea was either to copy the addresses of the subgroup to the main 
contact list OR make subgroups from within that subgroup. Can somebody 
please guide me to a solution?
I hope I explained the problem coherently.
TIA
Errol
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