Mail merge with Outlook and word

[Mike Hadfield]

OS is XP prof,
Office is XP prof.

I am trying to mail merge a document from within word
using outlook contacts.
When I select "Chose Contacts folder" and select the
folder containing the contacts I want to use; I get a
dialog box open at the connection tab. the dialog box is
called "Data Link Properties" it asks for select or enter
a database name:

My problem is I have no idea what to do - I expected the
program to have automatically selected the contact folder
I chose.

Thanks