try restoring your phone from a backup, if that doesnt work try restoring as a new phone and then import your contact use idrive to backup your contacts if you havent got them all on your sim card
there could be a problem with the backup you are restoring from. i dont have this problem
Got the same problem suddenly. The only thing I did was to re-start the iPhone 4 by holding sleep and home buttons at the same time, to solve a problem with an application which did not run well. After that I noticed the sudden problem with the favorite list dialing - touch the contact #3 and the iPhone will dial the above contact #2, touch #6 and it dials#5 and so on. Deleting all favorites and creating a new list did not help to solve the problem. Any other suggestions?