Took me a while to figure out what was happening (or not happening!), but my phone (X) will allow me to go through the motions of setting an existing photo as a specific contact photo in my contact list but it doesn't actually save it.
I got it to work a couple times but when trying to set up others it just wouldn't work. It took me a bit to figure out that only photos in my Camera Roll can successfully be used for my contacts... unfortunately my X is new and of the 300+ photos I have on my phone, only a few are ones I've taken with the phone (thus in the Camera Roll)...
Am I doing something wrong? Why will it let me go through the motions of setting an existing photo from the "All Photos" folder for a contact but just won't do the last step of actually saving it?
If this is a limitation of the phone/programming is there a way to get around it by moving my photos into a specific folder on my SD card?