A while ago, I stopped using MobileMe for contacts and calendars on my iPhone. My main workstation is running linux, and I use the Google Mail web interface, so I am using Google Mobile Sync to sync with my data on Google's applications. My wife has been having problems with MobileMe on her iPhone. Contacts were being deleted from her iPhone, even though they were still on MobileMe.
Last night, I switched her over to Google Mobile Sync. Since she likes using a desktop mail and calendar client, I set up SyncMyCal to synchronize contacts and calendar entries to Outlook.