As a footnote to this topic, I have a user with Office 2003 Small Business Edition, and he had the exact same issue. Every time he clicked "To..." or "CC..." his mouse cursor would jump to the top-left corner of the screen, and Outlook would freeze and stop responding but not say "Not Responding". It also produced a low-toned 'bung' noise every time you clicked on any email or the app. When closing the task, I did note that "Select Names" was running as an app, but couldn't be forced to close without closing Outlook at the same time.
Thankfully, I found this post and Alt+F4 fixed the problem instantly.
I registered for the site to thank you for your post and updates. You likely saved me hours of frustration.