I thought I might post here and update my solution thus far..
1. Restored my iPhone 4 and iPad 2, and did not select iCloud.
2. iCloud working fine on the macbook pro, so I exported my contacts from iCloud to the vCards.
3. Turned icloud contacts off on my macbook pro (iCloud calendars remained on)
4. Synced iPhone 4 and iPad 2 with my macbook pro
5. now my iOS 5 devices sync my contacts and calendar locally with my macbook pro
6. Turned on iCloud only for my email, notes and documents.
Word to the wise: Stay clear of iCloud, WAY too many issues, especially for MobileMe migration customers.
Do you know what the solution is if not syncing with pc? My pc died (iPhone 4 synced with) so my only option of saving all photos etc was iCloud. I upgraded my storage plan and when I sign into iCloud from a desktop none of my contacts and photos are there....
Recently bought the ipad. Added the same @me account used on iPhone 4. Contacts and photos have not synced from iPhone 4 to ipad.
I bought an iPhone 5 yesterday and added the same @me account used on iPhone 4 and ipad. iPhone 5 began to download all photos from iPhone 4 and had all contacts too. I thought the problem was fixed. I spoke too soon as when I went to use my phone several hours later all contacts had been deleted and photos had stopped downloading (300 from 1000 downloaded).
***!! I cannot find answers anywhere.