Okay. It appears selecting groups via bluetooth doesn't work. How about selecting which groups to sync with gmail? On older version of Android, this was possible, but I don't see the option on my HTC? How can I select which groups sync with gmail?
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Found this: Go to People --> Menu --> View, and then uncheck "Show auto Gmail contacts."
It works for gmail, but not for bluetooth. For some reason, it appears that my history is synced over bluetooth rather then my contacts. I'll keep digging.