creating address book

Please help,  I have tried to export my address book from
Yahoo, but I
tried to follow the directions from the demo, but never got
the option
to open with excel, so never made it past that.
I will creat my own address book in gmail, but can't figure
out how.
There has to be a way, so help.  Also when I receive an
email, I
thought that address would automatically go to my address
book, but
no, so how do I do that?
Thanx,

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