Currently Being ModeratedDec 1, 2012 9:49 PM (in response to sberman)
I said "solved" because you provided full answer. Unfortunately negative
Yes, if I turn the contacts off on my phone I can create a local list. I was hoping when I turn cloud contacts on the VIP list will stay local, not sync to the cloud. Unfortunately, that's not the case.
(By comparison, notes behave better. Say you have cloud notes on and no local notes. To create a first local note, you must turn the cloud notes off, there is no other way. Then create a local note. Turn cloud notes back one, the note you created stays local. Then you can keep adding local or cloud notes as you wish.)