ok dude this is how it works

contacts = show all contacts

if u have msn from dev don't merge with others as will screw yours pics if you also have facebook. and msn did not always work so don't use it any more just skype and facebook chat.

you should merge your facebook contact with phone contacts. use the merge app

conversations = all chat conversations

Phone App ! = only contacts with numbers and also skype if u use.

hopes this helps dude!

Out!