I'm using a Droid 1. To change the sort order to last name: open the contacts application, press the menu key and select Display Options (shown below), Select Sort List By, and select Last name. Your contact list will now be sorted by last name. HOWEVER, if your contacts were never entered with last and first names as separate fields, then this won't help much :-( If that's the case, I'd recommend either editing your contacts via a computer in gmail or exporting them to excel, editing them, and upload. Good luck.