Fix for the "no memory to save contact"
I had the same problem on my T-Mobile Pulse. I have tried everything to fix it but unfortunatelly nothing worked. My Pulse is rooted and has AmonRA. I did a nandroid backup but it was useless. I tried also a wipe phone from AmonRA as well as Factory Reset from the phone and it didn't work. With a fresh install I was able to add new contacts but after sincronizing with my google acount the same problem appeared.
*Please take caution on doing the update. The battery needs to be charged (I recommend to keep the phone plugged just in case) and DO NOT interupt the process. I am not responsible for any damages made to your phone by doing this.
The fix for me was going to T-Mobile UK website. Support / Android updates and I got the updated firmware. I tried their way to do it but it didn't work so I tried something else. Follow these steps:
1. download the update from T-Mobile website
2. Unzip the archive
3. Copy the Dload directory to your SD card
4. Open the phone with the card inserted and go to Settings / SD card and phone storage / Upgrade
5. Wait for the update to take place. It will take about 2-3 minutes and you are done then.
6. Phone restarts and you have a clean install of Android (nothing is saved)
After this you can reinstall your apps, synchronize your contacts, mail, calendar and everything will work just fine. At least for me it did. Now I can save as many contacts as I want and the whole menu and everything is smoother.
Have fun with your Pulse.