Address Book version 3 has new record format and the fields are will hold more characters.
The net result is that the record size has increased from 440 bytes to 590 bytes. As the list is memory resident, Address Book will require more memory to run. In addition, the application is much larger requiring even more memory.
Previously, if you had 250 records, 300K of memory would suffice for the application or DA. With the new application, 450K will be required. The new DA has less features than the application and uses about 100K less. Leaving the print and export capability out of the DA was done to keep it small and allow those with 1Meg Macs to use it. If you run MultiFinder then I suggest that you use the Address Book application and use QuicKeys™ or similar program to launch it.
Address Book v3 will open your version 1 or version 2 list file and convert it to the new format.
The DA no longer requires the Addr_list file to be in the system folder nor has it to be named "Addr_list". I suggest that you create an “Address Book” folder and put the application, AdBk Prefs, AdBk Help and all list files in it. Even if you prefer to use the DA, you will require the application to do printing.