********SOLUTION FOUND*****
I just off the phone with Apple Support SeniorEengineer. It took me an hour to get to this level, but he then fixed my issue in 2 minutes and now everything shows up correctly.
To give you the background: I upgraded from a 3GS to a 4S and moved my service from AT&T to Verizon. The phone numbers were not showing up correctly [4589658965 vs. (458) 965-8965]. This also affected the caller id when calls came in and the text message id. It also prevented Siri from being able to call anyone in my contacts list.
Here is the Fix from Senior Engineer Shawn:
1. Dial *22899 to get the latest software update from Verizon.
2. You will get confirmation of your update. It will show up on your screen as "Update Successful"
3. Go to the home screen and then double-click the home button so your taskbar appears.
4. Hold the contacts button (On the taskbar) for about 2 seconds until the icons start to shake and a little minus sign in a red circle shows up in the upper left of the icon.
5. Turn off (by clicking the minus sign) all applications that may be using your address book. You can scroll left to right to make sure you get them all.
6. Once they are all turned off, reboot your phone by powering it off and then back on again.
7. Tadaaa!!! Everything should be working correctly.
I really hoped this helped.
Skibutte