by Liana Lehua
I was perusing my contacts today to find and coordinate with my Flickr group friends for a meetup. Having created Groups in my contact list, I found it easy to narrow down my search for the person’s name who I wanted to call. Creating and using Groups is also a great way to categorize restaurants or travel favorites (San Francisco restaurants or Chicago Movie Theaters, for example).
Try it out, you may find it helps organize your contacts in a new and useful way. If you need help in learning to create a group in your Address Book, check out this screencast I recorded for the iLifeZone.
Enjoy! 
I would love to do this in the iPhone. Is there some way that the groups that you setup transfer to the iPhone?
They do transfer to the iPhone. In your Contacts, you should see a “Groups” button in the top left-hand corner of the window. Click that, and any Groups you’ve synced from Address Book through iTunes will be listed there.
if only Apple would permit Groups on dotmac…
Hmmm…no such luck for me. I do not use a Mac, so I do not sync with Address Book; I use Outlook (not my choice, but the only one available to me with Windows). I do not see the groups button in contacts on the iPhone
Is this a Mac only thing?
William: In Windows, if you add “Categories” to your contacts in Outlook and sync with your iPhone, you will see those groups by clicking on “Groups” in the top left-hand corner of the window on your iPhone Contacts application.
All of my contacts are in categories in Outlook. I do not have the “Groups” in the top left corner of my iPhone.
Tell me I’m overlooking it; I’d love to find it.
I’m having the same problem as William. Please advise. I have on older version of Outlook (2003).