The current status is that it's not fully functional and the system updates for the mac have not yet been pushed (or have been pushed to a very limited number of people). Once everything is up and running, which could very well be another day or so, everything should take care of itself. For now, you can just sync your contacts with your phone the old-fashioned way (using a USB cable).
Try clicking on the .Mac Preferences in your Preferences Pane, then click on the different tabs (iDisk, sync, etc). That's how it showed up for me initially.
my stuff was still showing up as .mac until i went to .mac preferences (like the previous poster suggested)
i went to account details and then it prompted me to update...my mac was showing it was all up to date before as well.
hope that helps!
btw.. for what its worth. my .me is not syncing as nice as alot of people have been posting, so i guess we will just have to bear with it for a few weeks