Doesn't recognize my N900 as a valid device, therefore won't allow me to backup contacts to Ovi.
Would really need this feature working ASAP.

same boat man. frustrating. although as of this morning, i can now access the Ovi store from the shortcut, which is an improvement, so maybe just a matter of time for them to add the n900 as a device

Maybe we are just expected to play angry birds while we wait?

Certainly are! I could really do with the contacts back up, but i'm sure it'll be sorted soon, Nokia have done plenty in the last 24 hours, i'm sure it's on their 'to-do-list'.