Similar issues here too Gretchen.
I attempted all suggestions in this article:
http://support.apple.com/kb/HT1497
To no avail. MobileMe would not accept "Reset Sync" for the Contacts, and although all my Address Book contacts are present on my laptop, none are arriving on MobileMe.
Later, I took off the MobileMe Contact Syncing on the iPhone, and attempted to overwrite my Address Book contacts onto the iPhone, also to no avail.
I attempted to Reset SyncFolders: check out this article:
http://support.apple.com/kb/TS1627?viewlocale=en_US
Reseting SyncFolders as suggested did not work for me.
In the console, I noticed these errors came up when attempting to sync to iPhone and to MobileMe.
8/26/08 9:44:12 PM AddressBookSync[230] AddressBookSync (client id: com.apple.AddressBook) error: Exception running AddressBookSync: CoreData could not fulfill a fault for '0x66d9d60 <x-coredata://2BF4D0E9-C434-4305-8756-D346FDB8EC2E/ABCDEmailAddress/p1260>'
8/26/08 9:44:12 PM com.apple.syncservices.SyncServer[222] 2008-08-26 21:44:12.757 AddressBookSync[230:10b] AddressBookSync (client id: com.apple.AddressBook) error: Exception running AddressBookSync: CoreData could not fulfill a fault for '0x66d9d60 <x-coredata://2BF4D0E9-C434-4305-8756-D346FDB8EC2E/ABCDEmailAddress/p1260>'
Not sure how to work around. I attempted other suggests on threads including deleting Address Book folder and restoring from exported Address Book Archive File.
I tried restoring Address Book & SyncFolders from Time Machine; to no avail.
I'm open to other suggestions!?