[golfgeek78]

I have fought with this issue using an EVO and my personal hotmail account. I have found success though doing the following:

- Using your PC go to hotmail and delete any distribution lists/groups (also known as 'categories' in hotmail speak) that you have configured in your Contacts. This will not delete the contacts in them.

- On your Droid go to Manage Apps->Contacts Storage->press Clear Data

- On your Droid go to Settings->Accounts & Sync and remove any other Exchange accounts you have configured using any mail clients. Your Google account is fine and doesn't need to be removed.

- On your Droid open your Contact list and make sure it is now in fact empty

- Wait 15 minutes. I don't know why, but sometimes it takes 5 and sometimes it takes 10 minutes for this "fix" to come down from Hotmail. I've done this so many times exactly the same way I could do it in my sleep and I can't tell you why but some times it takes a few minutes. I've never had to wait more than 15 minutes.

- Re-add your Hotmail account on the Droid before any of the other accounts you deleted

- Go to Settings->Accounts & Sync and fire off the first sync of your Contact list

Hopefully this will work as well for you as it always does for me.

Happy sync'ing