I upgraded my phone because my 2 years were up, and I was due for an upgrade (-yay!)
I went from a Droid (the one with the keyboard) to an iPhone (thank you Verizon and apple . . . finally)
I still like some of the features of having a droid based phone, and I still dislike some of the features the iPhone doesn’t have, but nothing is perfect. Can’t find the perfect gadget, can’t always find the perfect purse . . .
Anyway. Coming from a Google based phone, where you just sign in with your google e-mail and the contacts auto import along with mail and calendar, I did that with my iPhone and none of my contacts showed up.
I did a Google search, and found the steps to import by singing in by using Microsoft Exchange instead of Gmail:
http://www.google.com/support/mobile/bin/answer.py?answer=138740&topic=14252
sue-leigh.me 
🙂 Yes…finally. So I’ve found Google’s contact sync and exchange functionality to be suspect, and really haven’t been pleased with the overall product. I’ve found the Mobile Me product to be worthwhile, especially if you’re using a Mac. It’s not perfect, but it’s pretty close. Something to think about, and you can’t go wrong with the free trial.