Does this ability exist in Kmail / KOffice?
Maybe planned for future version?

Recently I installed Win7 with Office and Outlook '07 with the aim of using the merge to fax function.

Word document -> merge to fax -> select from Outlook contacts, etc.
(fax modem, not internet fax)

Well this functionality (apparently existing in '03 versions) has been dropped, unless I'm missing something, which doesn't seem to be the case.

So now that all these contacts are filled out and organized into folders I cannot use them for the intended purpose. Thanks MS.

It would be great if I could import these "Personal Folder File" (.pst) into KOffice.

Otherwise what would be the best way of going about this, .csv file?

I suggest you consult http://en.wikipedia.org/wiki/.pst

Thank you sir!