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Still a pain!
Even though it's possible to manage this file, it can still be a big pain. That file gets corrupted easily and sometimes the addresses in the file are not able to be sent to. This is especially true when moving to/from Exchange. I try to tell users not to rely on that file, but they end up using it instead of their contact list. It doesn't sync with the server and gets corrupted or they move PCs and lose everything. I'm actually on my way to work on an issue for this very problem today.