New Lion MacBook Air Address Book deletes all entries from MobileMe Contacts on sync
I have a similar issue here, but not involving MobileMe.
I
've been struggling to see any of my iPhone 4 (running iOS 5 beta4) contacts appear in Lion's Address Book. It's all empty, whatever I do through iTunes (10.5 beta 4) (either manual syncing of Contacts, or by using iCloud). 

At least all my contacts are still on the iPhone...  but i'm stuck with a beautiful new Address Book on Lion which has 0 contacts... (or just that "Apple Inc" and "Me" contact cards)..