Apparent Bug: Adding photo to Contacts
Go to Contacts --> Select a Contact (one without an assigned picture) --> Click "edit" --> Click add photo --> Select the option "Take photo" --> Take a photo.
Even after selecting use photo, it will not be added to your contacts. The contact will still show no photo. Additionally, the photo will not be added to your photos album or anything. New bug?
iPhone 4 (16GB), iOS 4, 4.0.1