Hi Ryan,
There are multiple ways to create contours in ArcGIS depending on the version you are using. The screenshot in the post above shows the Contour tool available on the 3D Analyst toolbar. There is also a geoprocessing version of the tool (for scripting, building models, or single executions) available in ArcToolbox > 3D Analyst tools > Raster Surface > Contour.
If you don't have 3D, you have to have the Spatial Analyst extension. Pre 10, the Contour tool is available on the Spatial Analyst toolbar (similar place as the 3d toolbar) and also in ArcToolbox. In ArcGIS 10, Contour is only available from the Geoprocessing Environment. For Spatial go to ArcToolbox > Spatial Analyst tools > Surface > Contour. For access to Contour from 3D Analyst, the location in ArcToolbox is unchanged from 9.3 to 10.
Regards,
Eric