Very frustrating but maybe I am doing something wrong. Perhaps the contacts need to be on the phone memory or something? Comments appreciated.
Dingbatt: I have a Hero running senseUI so I don't know if it will translate directly. To add a contact to a group I select a contact > edit > groups , and tick the appropriate button.
Sometimes I just sit and think. Other times I just sit.
n4: Think you're right, they need to be on the phone not on the SIM.