How do I set up my address book? When I try to send an email it does not see the address book that has all my mail ID. I know there is place to identify the address book. I looked at Option under File and I could not find the window where I could Identify the Address book.
Can anybody help?

Open your address book window, then select Tools > Options, you can then select which address book is the default one.

I do not see the Tools button. There is a button Address book under contacts. The Address Book I want to make default does not show in the list. In 2003 version there was a button Tools - Option. I do not see that in 2010. Under File There is OPTION. However, in contact there is no place for Default Address Book.

The option you seek is accessed by selecting Contacts > The Home tab > Address Book. This will open the address book and show you all listed address books. At the top of this window is Tools.