Vista - Separate folders in Windows Contacts

I created some new folders in the Windows Contacts by right
clicking>New>folder. I moved some contacts into them, but when I create new
mail and click the Contact icon next to the To: address, the folders are not
shown in the Select Recipients dialog. All the contacts are just shown in
one large list, when defeats the purpose of using folder to organize
contacts. Is a way to make the folders appear in the New Mail/Select
Recipients list?

Thanks