Yes, I have lost most of my remaining gray hairs over this, too:
MS Outlook hostile interface
In fact, the client I'm on my way to seeing now is always at risk of seeing this dialog if they happen to install the service pack that implements this. I know there are lots of third party "hacks" to get rid of this in Office 2000, but why can't it just be a user preference that persists? And, as Paul points out, my automation logic is not even coming near the address book in Outlook. I just need to have an email sent automatically when the user clicks a button in their VFP app. Sure, we could switch to SMTP or something, but the users like to see it in their Sent folder, etc. Seems like they could have done something a little more creative than this dialog to "fix" the problem.