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Anyone with a similar issue: I got this sorted out by asking my question here:
http://forums.imore.com/iphone-4-forum/175019-groups-contacts-2.html
Thanks.
So far I have tried Group, SmartR, and GrouMe to try and group my iPhone contacts. The downturn with all these apps is that they place my iPhone contacts on their native servers and apps and group them there. I would really want to group my iPhone contacts directly within the default Contacts...
I have tried several apps which claim to allow grouping of iPhone contacts such as Group or smartr but problem with those is that they do not place groups directly within the iPhone Contacts app and the contacts exist in their native apps. Also, I tried the above app and it does not work as it...