"I am looking for an addition to Outlook XP that instead of adding a rule that says sender in a specified address book, but it says sender is NOT in specified address book. This would work for me to block or handle spam. "

You can do it one of two ways:

  1. Create a rule to do something with all messages from people in the address book, such as move to the Inbox, and add a stop processing. Then add a second rule to process all mail (don't select a condition) and list it last in the Rules wizard. See http://www.slipstick.com/rules/junkmail.htm#sue for more information.
  2. Create a rule to process all mail (don't select a condition) and create an exception if it's from someone in the address book.