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Part 1 - Import into Contact Folder:

Save Excel file as tab delimited text file (make sure row 1 has the column header names!)
Right click on your contacts and select "New Folder" and type in a folder name
Select your new folder then click on "File" -> "Import" -> "Open"
Select "Import from another program or file", click "Next"
Select "Tab Separated Values (windows), click "Next"
Click Browse and select the text file you saved, click "Next"
Make sure the Outlook folder name you just created is selected, click "Next"
Click the "Map Custom Fields" button and go through and let Outlook know which headers in Excel go with the headers in Outlook (see how-to video for examples), Click Ok when done
Click "Finish", and all your contacts from Excel will now be in your Outlook folder

--> Click the link to watch me do this: http://screencast.com/t/aMHpwVyYO6uP

Select your main contacts folder (ex. "Contacts - netid@cornell.edu") under My Contacts
Click on "New Contact Group" and give it a name
Click on "Add Members" -> "From Address Book"
Select your contact folder under Address Book
To select all contacts in the folder: Select the first contact in the list, scroll down, hold down the CTrl key and click on the last contact
Click on Members button to add them all, click "OK"
Click "Save and Close"
You can now select that group and click on the "E-mail" button to e-mail everyone in that group