You have to update your contacts in order for the address to show on the contact form. Using the address entity will always make the addresses show up in the more addresses section.
In dynamics CRM there are 2 ways of doing addresses. The non-mornalized way which is to have up to 3 (by default) addresses in the contact record. The normalized way which is to have a seperate address record which is related to the contact.
Please feel free to call me or email if you have questions.
Jeff Loucks | Available Technology | 888-474-2237 | http://msmvps.com/blogs/jeffloucks