Ok, So, on MobileMe, I created a Family groups and Work Group. I added a few names to each. However on the iPhone, the new groups show up, but without any contacts underneath them. Under All Contacts, I can change any piece of information on either MobileMe or the iPhone and the other side gets updated in under 10 seconds. I created an "bb" groups which appeared on the iPhone right away. However, when I deleted it, the iphone never updated. And when I recreated the "bb" group, a second bb group shows up on the iphone. Weird.