Contacts Problem

I add the pictures of my contacts on my Mac because I like it showing up as a small thumbnail as apposed to the large picture when I assign the contact picture on the iPhone. However, ever since using iCloud, I cant edit the contacts on my mac and sync the changes to my phone manually. All it does is add a new group "from my Mac". I don't want separate groups. I want to edit the contacts on my Mac, sync the changes through iTunes, and have it update the contacts in iCloud. Is this possible?
I have an iPhone 4S running the latest software and my Mac is running 10.5.8 so I can't use iCloud on my Mac.