"Next, connect your iPhone to your computer and then wait for it to show up as a device in iTunes.
Once connected, click on the "Info" tab and go down to "Contacts". Select to sync contacts with Outlook and then sync your iPhone.
This operation will copy all contacts from your iPhone (including contact pictures, if you use them) to the Outlook Contacts folder.
Just need to make sure that the contacts were sinchronized to the Outlook."
Its this part that doesnt work. Not a WP issue but an apple issue brought in after icloud. It USED to work. No longer.
the second part abut adding the contacts to the hotmail account failed as they werent email addresses.
Why didnt MS just bundle a simple vcard based contacts manager into ZUNE? Then its universal. Also sync to outlook -> sync to a live account with a plugin -> too bodegy and too complicated for end user.
iTunes may be a bit poo but it is easy, reliable and does the basic job. Thats what ZUNE should be... At the very least it should be able to import windows contacts direct without HAVING to go via the cloud.