Solution for Known Issue:
I've seen other forums where the previous listed solutions didn't work, for those of you who experienced this problem, try the following:
The contacts need to be saved to the device itself with Android 2.1 and later on some Samsung models for full Facebook contacts sync. By default the contacts save to your gmail account. If someone transferred the contacts directly to the phone itself or you typed them in yourself, the other solutions should work. If not try this:
1. Back up contacts to your sd card. -Open contacts, press menu, press more, press export/import. Press export to sd card, note the file name, press ok.
2. Now, import the contacts to the device itself. -Open contacts, press menu, press more, press export/import, press import from sd card. *Important* Now you will see an option for "create contact under account", choose PHONE. Warning: you may get some duplicates. It will search your sd card. Click import one vcard file. Click on the file you made a note of in part 1. Press ok. The contacts may take some time to import depending on the # of them.
3. Go back and try to sync Facebook as you did before, or see instructions on how to sync Facebook in previous comments.
Hopefully that solves it for those of you who have tried everything else!