Outlook is a program on Windows, nothing to do with the phone pal. You'll have it if you have Windows Office installed on your computer. Even if you don't you will still have Windows Address Book, which is what I sync my iPhone with.
Open iTunes and it's under one of the tabs there (sorry, I don't have iTunes on this laptop to show you a screen pic) You can select Windows Address Book to sync the phone with. Once you've synced your contacts, open Windows Address Book up and you can edit all the details - name, numbers, multiple numbers, email addresses, personal information etc. Then sync back with iTunes again and you are sorted.
I wouldn't bother paying for MobileMe (service from Apple) unless you sync a lot of information with networked computers, such as corporate/work email, calendar and contacts, and need updating of new calendar appointments, contact details etc over the air without being near a computer - and working on what and how you've written what you have, I would suggest you don't need this....