Outlook express not sending e-mails!

[SoSl0w]

OK I have a few problems and questions as well. I did a short search and didn't find anyone with my problem. The first issue is, I can no longer send e-mails to anyone I want. I have to send e-mails to people that are in my address book. I never had this problem and I am clueless as to what I may have done or what my ISP may have done. The second issue is even more troubling. I started noticing these little files on my desktop with no name. They had the title "~" and that is it minus the " of course. I found out tonight that everytime a new address is saved that this file is placed on my desktop. See below for a pic. So what do I need to do to send e-mails to anyone and how to stop Outlook from putting these damn files on my desktop.
Windows ME, all recent M$ updates for system, dial-up ISP w/ crappy connection, P3 system 512 ram
Thanks
Greg

[Steve R Jones]

The "~" is a known glitch. Currently all you can do is delete it.

What happens when you try to email someone not in your address book? Any error messages etc??

[SoSl0w]

I do not know why but right now I can not replicate the problem or the error message. I guess it has decided to be stubborn today. If the "~" is a known glitch and causes no harm then OK. If I get the error message again I will update this thread. Thanks for your help so far.
Greg