Being trying to get an easy method to do this for ages on my new Orange San Francisco phone and finally sussed it out.
So i've written a noddy guide below, hope it helps some one.
How to get all your Outlook contacts on your Android phone
Select Import and Export
Select Export to a file
Select Tab Separated Values (windows)
Select Contacts folder when asked which folder to export from and click next
Select browse and the desktop for easy access later click ok and then next
Then click finish
You will now have a .txt file on your desktop (With what ever you named it or default is contacts)
Open it click edit and select all, right click on the highlighted text and select copy
Now go to this website:http://homepage.mac.com/phrogz/CSV2vCard_v2.html
Right click and select paste in the step 1 box
Click step 2 (I just left this and didn’t alter it)
Click step 3 then right click on the highlighted text and select copy
Now open notepad on your computer
Right click on the empty page and select paste
Select save as and now in the name box type contacts.vcf (removing the .txt file name)
You will now have a vcf file with all your contacts in.
Place this in the root of your SD Card
On your phone click contacts, then the menu button and select import/export
Now all your contacts will be transferred to your phone