iOS 5 Problem...

I updated my wifes phone to iOS 5 and I'm having a wierd problem. All of her contacts are there, however when she tries to send a text message, or tries to call some of her contacts it just puts the telephone number. It won't show the contact name. I've tried deleting the contact and making a new one. That didn't work. I tried deleting the iCloud account, and that didn't work, I tried deleting just the contacts, that didn't work. I tried restoring the phone 3 times, that didn't work. There aren't any other problems with the phone. We took the phone to a genius bar, and they couldn't figure it out. I have updated my phone and my iPad and there aren't any problems. Can anyone help? Or give any suggestions that I may not of tired.

Thank you