Mel Sampat has created an application called OutSync.
OutSync is a free Windows application that syncs photos of your Facebook friends with matching contacts in Microsoft Outlook. It allows you to select which contacts are updated. So you can update all contacts at once or just a few at a time.
The main benefit of OutSync is for Windows Mobile users. Updated contacts are automatically synced with Windows Mobile devices by Exchange server or ActiveSync. Thus new and fun photos appear during calls and other places where contacts are used.