OK, I'll do the best I can to explain this one. We have Exchange as part of Small Business Server 2003. I have a person who accesses another user's contacts and calendar. The person also needs access to the SUBFOLDERS or subgroups of contacts nested under the main list. I got that working - I added the other user's mailbox so that it can be opend in the folder list and everthing shows up.
Here is where things go wrong. The person who does not won the contact list needs to do a mail merge into a Word document template. When he goes through the process of choosing the contacts to merge, it will show the MAIN contact list only of the other user but not the subfolders/subgroups. I made sure that on the owner's Outlook that the box was checked to "Show as an Outlook Address Book", but there is no place to do this on the properties of the person doing the mail merge.
I really hope this makes sense. The bottom line is that it almost sounds like a permission issue in Word since he seems to be OK viewing everything in Outlook.