Without a lot more details about your environment, it's impossible to answer these questions. Your best course of action is likely to talk with your Microsoft account rep, who can get full details and walk you through getting everything properly set up.
Regards,
Nadyne.
Nadyne - I am not able to create server side groups. My groups created in Outlook 2011 for Mac are only stored locally on my computer. I understand this to be a limitation of the current software with two major problems:
-no way to access my contact groups from my phone? This is bad.
-when updated a contacts email address, the group is not updated. This is REALLY bad.
Please advise as to if and when a patch to fix this is coming. I can not believe that this type of compromise would be made for Mac users.