When trying to send a message to a contacts mobile number that's on iOS5 - It says that they're not available for iMessage.
Do you need their email address for it to work?
No you don't need their email address, you can just send it to their mobile number. I believe by default iMessage is not turned on in iOS5, you may need to tell your friend to turn it on.
I have to text a few friends and ask then to turn it on.