If you are using outlook client for your crm, then go to contacts folder in outlook and select the records which you want to include in the crm and click on "Track in CRM". The selected records will be copied to the CRM and will be in sync with outlook.
Whenever you modify the contacts in the outlook then those will be synchronized to the CRM.
Or else if you are trying to import existing outlook contacts to the dynamics crm then below steps will do that
Export From Outlook
1.Launch Outlook. Click on the "File" menu, and select "Import/Export."
2.Click on "Export to a file." Click "Next."
3.Click on "Comma Separated Values (DOS)," and click "Next." Click "Yes" to install this feature if it hasn't been installed yet.
4.Click on the folder that contains your contacts in the "Select folder to export from" list. Click "OK," then click "Finish."
Import to Microsoft Dynamics CRM
1.Launch Microsoft Dynamics CRM 4.0.
2.Click on the "Tools" menu, and select "Import Data."
3.Click the "Browse" button, and navigate to the CSV file you exported from Outlook. Select it, and click "Open." Click "Next."
4.Follow the on-screen instructions in the "Import Data Wizard" until the import is complete.
Below link helps you
http://rc.crm.dynamics.com/rc/regcont/en_us/op/articles/outlookimport.aspx
Thanks
Vicky
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