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Make sure your contacts are "google contacts" and not "phone contacts". Google contacts will sync up to the cloud, phone contacts wont.
I must be either blind or stupid, because I'm just not seeing it. Not am I seeing any kind of "phone" or "gmail" setting when I create a new contact on the phone. The stuff I create in Google or Yahoo comes down fine. Anything done on the phone just stays there.
We may go in this week and upgrade my wife's phone. Maybe I'll just ask about it there.
On my phone, I click on Contacts, then More, then Settings and at the top it asks where I want to save the contacts to. I also have background sync turned on.
I see a "More" down at the bottom of the contact, but no "settings". I see Notes, Nickname, Website, Birthday, and Anniverasry.
I did find a setting that controls where new contacts are saved, and in there is an option to ask where to put them. I still don't see any way to change existing contacts.