This one got the better of me for an hour or so before I figured it out. I was trying to sync my cell phone with my desk pc to get my calendar and contact items.
I had previously synced my phone with an Exchange server but I removed that sync relationship. I then tried to sync my phone up to my pc by creating the sync relationship using Microsoft's Active Sync software (running on XP by the way). It would sync everything I needed except for the contact list. I had over 300 outlook contacts so I really did not want to add them in by hand. I have seen many suggestions pointing to the need to hard reset my phone. I really did not want to do that as I has spent alot of time configuring it the way I wanted.
I then tried to open up the Active Sync soft and went to the options of what to sync. I removed the check box to sync up the contacts. It then gave me a notification that all contacts on my phone would be erased. As I did not have any contacts left on the phone it really didnt matter. I then sync'd the phone with the contact opton not selected. Then I went back to the sync options and added the contact list back in. After the next sync I received all 300 contacts on my phone.
It seems that there may be a bug in the software that prevents the contact list from syncing to a different device if the phone was previously connection to a Microsoft Exchange server.
There may be other ways to fix this problem but "Itfixed it for me"