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Quick explanation of what the contacts synchronizer does, so you don't waste much time with it if it doesn't meet your needs.
It takes all you Outlook contacts that are in folders and reproduces them into the root folder and applies the original folder name to the contact's category. When you sync, all the contacts in the root wind up on the PPC and are organized using categories. That seems a good solution except that every contact is now duplicated in outlook, once in the original folder, and once in the root (with a category). That's what it does.
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