I have a Motorola Defy here with Android 2.1 . Don't know if it is crippled by the carrier or what but there seems to be no obvious way to import or sync Windows 7 Contacts reliably WITHOUT going ...
Microsoft is working on revamped settings layout for the Your Phone app. There also appears to be a dedicated tab for browsing your contacts. It isn't clear when this revamp will roll out to everyone.