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Had the same problem. I uninstalled with titanium backup and rebooted my droid2. Then it allowed me to install it. Hope it works for ya!
if he backed up his contacts through verizon, you can actually go to the verizon website and pull up the list. however, you have to put it all in...
did you try pressing the magnifying glass button on your keyboard?
definitely worth the ~$35 that i paid for (when they had the deal a while ago. its a must for me
coming from the env2 (also verizon), this phone rocks! (its also my first smartphone)