Several months ago I thought I saw several postings about doing contacts from 5x7, but can't find them now. You can use the light from an enlarger if you like, but it's not required. I use a frosted 7.5 watt light bulb about four feet above the contact print frame. I process in standard trays and wash prints in a standard Zone VI printwasher.
Contact printing is the simplest and best way to print.
Much better than any of the new papers. I agree with Michael that the best paper is Azo. I also agree with William with respect to using a regular photographic enlarger for your light source. I have always used my enlarger for contact printing as well as projection printing of negatives. I use a Dichro light source and Variable Contrast Printing Paper.