The issue where you get double entries in your Contacts is a known "quirk" with Windows Mobile and Outlook contacts. You are indeed seeing the contacts from both (the picture beside the entry should indicate whether it is on the SIM or not).
It is possible to prevent the SIM contacts from showing by modifying the registry.
Under HKCU\ControlPanel\Phone
add the key "ShowSIM" and set value to "0".
I'm not sure how that will effect what you are doing, but even 4000 contacts should take up less than 1MB of storage.
If you need, I can whip up a CAB that will add the that registry entry for you.
TrueG
TrueG, thanks for responding. I'm not sure which contacts I want to see. Hypothetically if all my sim contacts were imported to my Outlook contacts then if I "hide" the sim contacts I'll also have them in the Outlook contacts. However, I'm not smart phone savy and don't know how to go about modifying the registry. I also don't know exactly what a CAB is or how to add it to the registry.
Really, my biggest problem is not being able to easily search for contacts. As I stated in my first post "I have another question regarding why when I go to "contacts" it has a tiny window at the top to "enter a name..." when before on both of the other prior same defective Expos it opened a larger window your finger to activate and the keyboard would open. My "Today" screen is "LGidles", and I hate thwXT9 keyboard. I have the keyboard set on 1/2 qwerty." In other words when I press "Contacts" I cannot easily enter letters into the tiny window and when I do, the dam auto-guess function screws me up even though its turned off. It used to have a much bigger window pop up to enter the letters & without auto-guess before I did the update and now it does not. Also, after I do a search and close contacts & re-open it the last search is still in the tiny window. Grrrrr...
As I stated in my post, my other