I am not an Android owner but trying to decide to purchase on basis of successful Outlook syncing. I have had a lifetime of Outlook syncing issues with Treos and Blackberries. Treos were a nightmare. BB also truncates my notes in Outlook contacts. It's true, Windows mobile devices sync perfectly with Outlook - big surprise.
The folks who author syncing apps are pretty brain dead. Most Outlook users sort by the "file as" field in contacts. The syncing apps ignore this field and sort by with first/last name and company fields. Duh.
Yes, back up your computer's .pst before you try to sync to your device. If you can, avoid syncing in both directions and sync only from computer to device. I recommend this because these stinking syncing programs have a habit of duplicating your contacts when they sync from device to computer. A true nightmare if you have thousands of contacts.
I am at a loss to why BB and Android devices truncate Outlook contact notes, which are clearly vital to the gazillions of Outlook users to who take the time to enter these notes. These new devices now have tons of flash storage and there is simply no excuse for truncating any data. Is anyone at Google and RIM listening? Hello?