The software supplied with the v3 is a limited version of a retail product, so it's not designed to work as described (see small print on disc). You do have the option to upgrade to the full product for a small fee.....
I did get mine to sync with Outlook, but it did so badly, importing stuff that I didn't need (addresses, etc) and setting up in the wrong order.
Whatever you do, do NOT try to sync any v3's entries you already have with an empty PhoneTools database - you will just wipe the v3's memory! Speaking from bitter experience here
IIRC you need to find the option to create a new file/database/whatever in the PhoneTools software, then tell it from where to import the data. You will the need to sort through the newly created files to check that they are correct, and tell the software which fields you want to transfer to the v3.
Took me about an hour to figure this out the first time.
Hope this helps!