Here's the answer. It is because we implemented Categories for Contacts. However, Categories is not the default view. From my QA:
Droid 2.0 users who sync with CompanionLink USB may notice that some, or perhaps all, of their contacts do not display on the device after synchronizing. The problem is that the display options on the Droid will typically hide the user's contacts based on group/category membership. Here is how to fix this problem:
1. On the Droid, open Contacts, then go to Menu -> Display Options.
2. Tap the name of the primary contacts account. This will cause the account group list to display.
- To display categorized contacts, select "System group: My Contacts".
- To display uncategorized contacts, select "All other contacts".
NOTE: To filter the display so that it only show certain categories, uncheck "System group: My Contacts", then check the name(s) of the specific categories you want to display.
Wayland Bruns, CTO
CompanionLink Software, Inc.
www.companionlink.com