Contacts won't sync

I am having problems with my 2nd generation Ipod touch syncing with my new Macbook Pro. Everything will sync except my contacts. I tried to sync my contact list off my Macbook to my Ipod with no success. It goes through the syncing process but when I open contacts on my ipod it is empty. My music, podcasts, apps etc. all sync with no issue but my contacts is something else...