I have disabled the mobile me account for the moment and removed that account from the phone. When it was active, the contacts were syncing between the phone and MM. However, MM was not syncing with the address book on the macbook.
As I've already asked which you didn't answer - do you have syncing contacts selected for your MM sync preferences on your Mac and if so, do you have sync automatically selected? This is set at System Preferences > MM under the Sync tab for your MM account preferences.
When there are contacts in the Address Book on your Mac and contacts on your iPhone, you should be provided a merge prompt with the first sync for this data.
Try resetting the sync history on your Mac which is done via iSync preferences with the iSync application located in your Applications folder.
If no change after that, since the contacts in the Address Book on your Mac are available with your MM online address book, create a backup for your Address Book contacts on your Mac to be safe. File > Export > Address Book Archive.
Follow this by deleting all contacts and Groups except for one contact. Try syncing and you should be provided a merge prompt which you want to select. If successful, create a backup for this data with the Address Book on your Mac - keeping both archives.
Sync the Address Book again with your MM online address book. You should be provided a merge prompt, which you want to select.