My contacts stopped working just as described in the original entry about a week ago. Here is some more information that may help in finding a solution.
1. I back up my contacts list using Lookout.com. The list and all its contacts with information appears to be fully intact. I imagine you will find this with any backup of the contact list.
2. I tried to clear the data from Contacts and Contact Storage. I was able to do this for contacts which was only 4K, but for Contact Storage which had 5.48M. the clear data button is grayed out. After clearing just contacts storage Contacts still did not work.
3. I was able to run a successful restore of the contact list from Outlook.com, but contacts is still not working as described in the original entry.
4. I brought up Contacts and selected settings. When I tried to select Contact storage, which is suppose to allow you to select where to store new or imported contacts, I simply was placed back into my contacts list.
My DROID X phone is also a non-rooted stock phone.