I think you are on to something. If I open a new message to compose and put part of the email address in, if there is a name associated with it, it finds the name of the person, if there is one, when I do the Ctrl+k, but if I want to make changes to my Contact information, I have to make the extra steps to go back and forth between the inbox and contact. Also, some emails don't have a name associated with them and so it doesn't find those through this approach.
I checked the properties as you suggested. It is checked but faded out so it can't be unchecked. The Name of address book line has Contacts in it.
Now where do we go? Thanks.