1 Answer

To add a contact here's what you should do:

Under the 'Contacts' tab, after defining a Group name (item ) you can highlight a name from the 'My Contacts' list or type an email address in the box below the contacts list (item ).
Click the 'Add>>' button (item ) and the email address will appear in the 'Group Members' list on the right.
When all the required email addresses have been added click the Save button on the toolbar (item ).

Now we have added Bob, Sue and Ted to the "Class of '86" group, we need to repeat the process and make another group for those who wish to keep their email addresses private. In our example let's call this "Class of '86 Confidential".
Add Alice's address to the "Class of '86 Confidential" and save that group. 

 Select Contact list from Windows Live Hotmail's left-hand navigation bar.

Now select Manage categories under Categories in the left-hand navigation bar.
Click New.
Type the desired group name under Name:.
This name acts as a nickname when addressing messages.
The nickname must be unique in your address book (a group cannot have the same name as another group or another address book entry's nickname).
Press Enter.
Type email addressees or existing address book contacts' names under Members: to add them.
Click Save.