I think that feature was removed in gingerbread. Download SyncMyPic off the market and it will sync your contacts. If they change their pic though you have to run the sync again. I run it once a week.
That was only for the nexus s. And I think that was gingerbread version 2.3.5 or 2.3.6. Droid 3 is on 2.3.4. Facebook photos not syncing correctly is a problem motorola has had since the original dx and d2 came out. Motorola isn't the brightest smartphone maker. Seeing as they let this issue remain in their dual core phones. Use syncmypix. Get it set up on a weekly schedule.
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