Inserting one doc into another

In Quark you could view both documents in thumbnail view and drag over to merge documents. InDesing is even easier, just have both docuemtns open adn drag from the pages palette of one document to the pastebaord of another. It seems to insert the pages at the end of the document, but you can rearrange them.

Your phone directory sounds like a huge InDesign file with many pages. You may want to look nto dividing and conquering, by using the booklet feature and posisbly dividing your document up by alphabet