I would like to suggest an alternative solution, independent of OS version, which you can ignore if you have found an alternative.
The procedure to export Outlook Contacts and import them to Pegasus Mail address books is as follows:
1. In Pegasus Mail set up a new address book, I suggest a name of Outlook
2. Download PMVcard from this site from url http://community.pmail.com/files/folders/pegadd/entry44115.aspx
3. Unzip the downloaded file (pmvcard.zip) into your Pegasus Mail NewMail directory
4. In Outlook (or similar software), export the Contacts file in vCard format to a file such as Outlook.icf in the same directory as 3 above
5. In Windows Explorer drag/drop the file created in 4. over the file, PmVcard.exe
6. You should now see a formatted display of the vcards created by Outlook, at the end of this display you should see an instruction to import this tab-delimted file into Pegasus Mail
7. In Pegasus Mail click the Address book menu, and select the "Import from tab-delimited file" choice with file just created.
8. Click OK to begin import. After a few seconds the program PMVcard will end. You can now restart Pegasus Mai and view the address book, Outlook (see 1, above)
9. Browse through the entries, and edit where obvious issues show up.
10. I recommend you read the documentation (Pmvcard.rtf) to identify issues and workarounds. It is important to understand that neither PMVcard or any other software (ie Dawn) can make use of most of the data stored in Outlook. The person's name and email address are the all-important data values. Other data such as postal address and Telephone device numbers and types are information only. There is a reference to the RFC concerning VCARD stream content in my documentation. You should note that vendors are very liberal in their interpretation of the RFC rules.
I hope this may help. Please note that when Pegasus Mail V5 is made available, that most of the issues will be resolved and the Pegasus Mail Address Books will look more like Contacts file content.
Martin