First of all, you can move definitely copy and paste addresses from a personal contacts folder or accessory contacts folder to the default Contacts folder. The easiest way to do this is by changing your view on the accessory contacts folder (View - Arrange by - Current View) to "Phone List." Then block all of the entries in the normal way (using shift-arrow or ctrl-arrow). Right click in the block, choose "Move to Folder" and move the entries into the default Contacts folder. You could also copy them (versus moving them), by using Ctrl+C and then paste them into Contacts on the folder list.
But the real issue here is that, at least in Outlook 2003 (you didn't specify what you have), you need to "add" any accessory folders (Contact1 or Personal or whatever) as an Address Book to be recognized as one. In Outlook 2003 this is a two-step process: First, you have to click on the Start button, right click on Email-Microsoft Outlook in the left side list. This brings you to the "Outlook setup" menu (If you don't find it above your Start button, you'll have to research where it is on your PC - right clicking on the program icon will NOT work for this purpose). Once you are at the Outlook setup menu, click on Email Accounts, then click Add a New Directory or Address Book. At next screen choose Additional Address Books. At next screen choose Outlook Address Book for your Contacts1 (or you would choose personal address book if it is something laying on your C: drive outside of Outlook, for instance). Then Step 2: Open Outlook program. On your left sided folder list, right click on the folder you want recognized ("Contacts1," for instance). Click on Properties, then select the tab "Outlook Address book." Then check off the box that says "Show this folder as an email address book."
Once that is done, when you search for addresses, it will indeed search your accessory address book as well as the default Contacts folder.
So there are two solutions. Good luck!