Just so you know, the "Outlook" option is referring to pocket outlook, which is your phone's contact list. So, if you are using your phonebook, then you are using pocket outlook contacts list. So using the outlook option should be what is right for you. I am not using either of the roms you are, so this post may be irrelevant. I am running DCD 1.11 and am very happy with it, and it has no problem saving contacts either.
Good luck! I hope you get it working, as I know that little things like that can be very annoying.