In the contacts tab after hitting the contacts button all my phone contacts have a small red and white person icon next to the name. Under the groups tab they're all listed under "Not Assigned" category but not sure it matters.
Under the groups tab the "not assigned" section is at the top then there is a phone section that has the sub categories (family, friends, work). Next is the google section (with my gmail account name next to it) with the following sub categories (starred in android, co-workers, family, friends, my contacts) nearly all of those have a "google system group" label below them.
Its kind of confusing but it should be pretty quick tomorrow to see if its going to pull them all in with my Google account.