Question: When sending an email and searching my contacts, it would be helpful if they were sorted in lastname, firstname order like the Global Address book, rather than firstname, lastname. Is there a way to change that?
Answer: After doing some searching, we found it! You have to go to your Account Settings options (2010 it is under File > Account Settings> Account Settings; in 2007 you find it under Tools > Account Settings) and click the Address Books tab and click Change. Click the Outlook address book and click Contacts (you can do this with Suggested “recent” Contacts too), and then change the “Show names by” to File as (Smith, John) and click Close. Be sure to exit Outlook and re-start Outlook before trying it to see if that worked.
Here is the Microsoft article with instructions: http://office.microsoft.com/en-us/outlook-help/display-the-contacts-list-in-last-name-first-name-format-HA010355556.aspx