for the benefits of others, can you share your solution ?
I am sure there are others in the same situation.
cheers.

all this is assuming you had an original contact list on sim from another phone etc. Then when you installed that sim into the iphone ytou had one set of contacts. After this point in time you did a sync and ended up with two groups or contacts list.
First export your contact list and save it to a location that you create for later use.
Then I created a folder named non iphone contacts in Personal Folders.
Then I imported the recently exported contacts into the new folder.
Here's the tricky part. Since I already had my cell phone contacts from my razor already on the computer I did an import to the contact list from my backup pst file which is the one that will get imported to the iphone and the other folder on the iphone was deleted.
Before syncing, make sure itunes is not set to sync when the phone is plugged in. Then go to info and make sure it recognizes the right folder.
outlook 2003 should look like this: I hope it uploads oke.