OK - since you offered.
I'm a little fuzzy on the people vs contacts thing.
1. I have it synced with Facebook but I really don't want every single person. I am unable to delete anyone thus far.
2. Why is that when a person calls me - there is no picture of them? All I get is the green bug.
3. If i create a new group - and go to add people to it - I can only add "Contacts" and not other people. I don't even know where it is getting "Contacts".
4. All I want is to have the pictures, phone number, etc. of about 50 people that I choose. Is that possible?
Ha ha, funny enough that's what I was fiddling with today myself. So lucky for you, most of that I have pretty good answers for.
1. The best you're going to get with FB when you sync it is under the view option pick to only show friends with numbers. So then only friends on FB that have a mobile or home number will show up in your list. There is no way, to my knowledge, to select and delete individual contacts from the list.
2. Also to my knowledge there is no way to make it show a picture when people call. It does the same for me. When someone calls regardless of whether they have a picture or not it always shows the green droid. I would best say that is how it is designed to operate and if there is an option for it I haven't found it yet.
3. I haven't tried adding a new group, but I tried the favorites thing. I'm not too super clear on this yet, but it seems that the majority of contacts are sync'd from other accounts such as Yahoo, Gmail, Facebook, etc. But apparently there are what it calls "Phone Contacts." I'm not quite sure how the three or four people I have got added under that and I've not found a way to look at the Incredible's "Phone Contacts." But like I said the majority of Android's contacts works by sync'ing with your accounts.
4. That most likely will not be possible since it will pretty much only let you choose which accounts to sync, and then it will use everyone in that account. You can delete someone off a contact for that account, but that only works if you are willing to delete them from your actually account. For example if you are sync'd with your Yahoo account and you have Joe's number and Samantha's number, say you want Samantha in your People but not Joe. You're SOL if you don't want Joe in your People but you want to keep him in your Yahoo account's contact book. However, if you didn't mind deleting Joe, you'd goto your Yahoo mail on a PC, goto the contact book, delete Joe, then do an account sync for your Yahoo on your phone. Joe would be gone out of your People now, but completely deleted from your Yahoo account as well.
Hope this all makes sense and helps.