PAB won't update with new contacts

[Rich]

I use to be on MS Exchange, however now I'm no longer on
the domain and just keep my email and contacts locally.
Now when I add contacts to the Contacts folder, they are
not visible when I go to send mail, and the new contacts
don't update to my Palm pilot.

I checked in the Contacts --> Address Book --> Options and
it shows:
Show this address list first: Contacts
Keep personal addresses in: Contacts
When sending mail, check names using these address lists
in the following order: Contacts

What am I doing wrong?

 

[cricket]

right click on the calendar folder and choose properties - is it enabled;ed
as an address book?