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The Entourage, Outlook or Now Contact software has to be installed on your computer to import information from their databases. The correct path to the application should be set in the Address Importing section of the the Preferences dialog.
Labels & Addresses launches the database and uses AppleScript to import information. For data security purposes, the database may stop the import process and ask the user to allow sending information to Labels & Addresses.
The next time you select a database from the Source pop-up menu, the Contacts tab will display the list of previously imported contacts saved to the cache. To update the cache, click the Update button (3).
Note: To use Labels & Addresses with Now Contact, the contact file must be the primary file. You can make a contact file "primary" when you open the file with Now Contact (tick the Make this file primary check box in the Open dialog). The primary file is the file that opens automatically when you launch Now Contact.