To answer my own question (to a point)
First had to group my outlook contacts (by vendor) and gmail contacts (by relationship) Then you do the following
Contacts-->Menu-->Display Options-->Then you select the types of groups you want to view.
This is a tedious way to group thing as you have to come back here and select which groups you want to hide/show each time you want to actually hide or show them
Hopefully in a future update we will be able to easily group contacts, both by being able to associate a group to each contact in the edit contacts and there should also be a groups tab on the top of the contact contents. Pleaseeeeeeeee