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Import and merge contacts

I have a client with a SBS 2003 domain. He is using Outlook 3003. He asked his assistant to create a new contacts folder on her PC and add all his new contacts into it. I then exported only the new contacts folder as a PST file to a public network share. Next, I imported the new PST file into his Outlook, same folder, don't create duplicates. For some reason the new folder imports as a sub folder to his contacts instead of merging. I think I have a pretty good grasp of Import\Export with Outlook but this one is giving me a hard time. Am I missing something?
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Michael S
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Ah,
Sometimes the simplest solution is the best solution. It worked perfectly. Thanks