I FIGURED IT OUT! YAHOO!

Here's my solution for using the Mailing Address and recording in each
business contact’s history the print letters sent as part of a marketing
campaign.
1) Select the business contacts or accounts you want to send a direct mail
print letter to. You can use categories, views and sort to make this easy.

2) From the OUTLOOK toolbar, click Tools, Mail Merge.

3) Select the radio button for "only selected contacts" and "all contact
fields." Pick a document if you have one, or create a new one. Go ahead
and save the contact data file. Click Okay.

4) Insert your merge fields. You will see that you have many more merge
fields that the usual business contact manager fields. I believe this is
because you initiated the mail merge from Outlook. You can select the
'mailing address.' This is the address with the "This is the mailing address"
box checked in the contact. (That solves problem #1)

5) Finish and Merge to Printer. Print the merged documents so you can mail
them.

6) Finish and Merge again but to email this time. Here's the fancy part.
If you put a dummy email address in all the contacts, you can send them an
email. Why would you want to send them an email? Because BCM records all
emails in the business contact's history if you click the Email Auto-Link
button in their record. Now you have a copy of the letter you sent to each
contact in their History. (That solves problem #2)

7) Still on the mail merge screen, click Create Campaign. It's right next
to Finish and Merge. A Marketing Campaign screen will open with your
information. You don't want to launch the campaign. You already sent it.
But you do want to Save and Close it so you will have a record.

I hope this helps others as much as me.