this is my problem too!!
this happened to me after i updated my windows live to the latest version.
i hate this update. it ruined my contacts, i cant add contacts and some of my old contact from the previous version were gone.
is there any technical support that can help us??
im starting to think that this update is actually fail, to see many other users get the same bug
i should'n t have updated but the update was forcing me to do so or else it wont let me use windows live. what a lame system indeed. im so dissapointed