On the new iPhone software, you can search for a contact using the first and last name. For instance, if you want to search for a contact, say Bob Smith , you would type B S (that's B, then a space, then S) in the search field. The iPhone will filter out all the contacts with first and last name starting with B and S. You can further refine the search by typing more letters. This is a great time-saving feature; thanks, Apple! (more…)
If you set up groups before transferring contacts to the iPhone, you can then show only a certain group (or all groups) when browsing contacts. I set up several groups in Address Book, but noticed that you can't change which group a contact is in on the iPhone itself. Nor can you add new groups on the phone, either.