As far as I know, you can only change the appearance of the names in you Personal Address Book. Go into your address book in Outlook and go to "Tools". Select Options and click on your Personal Address Book in the lower list area. Click on the Properties button and select the option you want in the Show Names By area.
I know this post is really old, but I've been searching frantically for an answer to this same question. I finally figured it out and wanted to post the answer for anyone looking for this in the future:
In Office XP - Go to Tools - Email Accounts - View or change existing directories or address books - Next - Select your Outlook Address Book hit Change - Choose show names by "File as" (Last,First)
I just tried doing that, and I couldn't change the global address book. This will only work with items in your Contacts folder, or any user created address books.
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