Everything j20owner said was correct, with a little caveat. Make sure your contacts are stored on your phone and not your sim card, otherwise it won't work.
If you don't have them stored on the phone you can copy them by going to: Settings>>Address Book>>Copy All Contacts>>SmartChip to Handset.
Then since you'll have double the contacts (stored on phone and the Sim) go to: Settings>>Address Book>>View Options>>Handset Only
Then you'll be in business!