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Help Need some help.

Also, any issues with the device recognizing SD card?

You shouldn't have this problem on a brand new phone.
I would say dont even fool around with it if you just got it. TAke it back for a new one.

Just purchased a Moto Droid 2 and I really don't want all the facebook contacts. How do i make them go away?

I dont use facebook, but try this.
Contacts-menu-+More-manage accounts.
I dont have facebook in there, but i'm guessing you do. If so, you should be able to remove it.

If not, you might have to go through every contact one by one and unlink them,
 
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