Bugs

1. (Fixed in 2.1) Performance with many contacts is terrible. Searching and browsing lag.
2. A contact does not sync when only the Notes section is updated.  This is true if it's updated in phone, or updated in server (e.g., Outlook).
3. When a contact's Notes is edited in the phone, original formatting is lost and extra formatting is introduced.  Some lines end up being formatted as a section heading (Cambria 14) for example.  There is no apparent reason why the extra formatting occurs on some lines only.
4. When viewing contacts in the Exchange directory, you cannot 'Add to Contacts' to add the contact to your local storage.
   
5. When using MS Exchange Activesync for contact syncing, contact groups that are removed from the Exchange account (deleted or moved) are not reflected in iPhone contact group folders. The group folders remain in the iPhone list although they are empty. This situation persists even after the contact sync is switched off, phone is restarted and contact sync switched back on.

1. All Contacts folders in the Exchange store are sync’ed. There is no ability to set options on this
2. Ability to send contact information (via vcf or similar) to an email recipient.

UX Issues

1. Searching contacts requires too many clicks to search company directory -- should be an option when local store is not found like Windows Mobile (when no match is found, there is a contextual option to search Online Directory)