I just realised that 10.5 cant do this basic sms function from the address book. I hope Apple bring this feature back cause I havent & probably wont upgrade to Leopard until they do as I find it so much easier & quicker to just dash off an sms with the keyboard on my mac, I use it all the time.

What I am wondering is what to do if you have an iPhone( not yet) and you want to send an sms using your macs keyboard. I asked the author of the emitsms widget & he said :

"The iPhone unfortunately does not support the protokol my widget uses for sending sms. If the iPhone ever gets the ability to act as a bluetooth modem for a computer, it will probably also implement the protocol I need, as these things often go together."

so this puts me off getting an iPhone at this stage as well...
BTW I too am in Australia so none of these free sms services work either.