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Outlook XP will not allow mail merge with Word 2000: complains that versions are not same

I upgraded to XP op system from ME and from Outlook 2000 to Outlook 2002 recently. I am still using Office 2000 (Word etc.). I can no longer send bulk email using Outlook Contacts. I used to be able to do this
under ME.  
I want to be able to send an email to many people in my Contacts db without them seeing all of the other recipients.
If I use a Outlook DIstribution List, it displays all recipients. Is there a work around?
I have searched the EE database but only find questions regarding Access and Outlook merges. Thank you.
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Sembee
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mesaffer

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Simon -- thanks -- I did upgrade (ouch! $329) Office per your suggestion.
I am surprised at the version compatibility problem but c'est la vie!
I have new Outlook problems now, but that will have to be a different question.
M.