The standard government GIS maps are in ESRI Shape files. Is there a way for Mappoint to import these maps or a conversion tool available out there that can translate and ESRI shape file to a Mappoint file???

Absolutely. #1 below is most flexible if you have programming skills to modify it, but the caveat is that depending on the shape files you want to import, you may need programming skills to make it work at all.

1. The free "Spatial Data Importer developer sample". Search using google and also on this site for discussion
http://www.google.com/search?q=site%3Amp2kmag%2Ecom+spatial+data+importe r

2. Safe software's FME has MapPoint import capabilities
http://www.google.com/search?q=site%3Amp2kmag.com+safe+fme

Eric