I just wanted to chime in with my facebook contacts experience. I installed 2.1 from the SD card 1 TIME. When I synced my FB contacts, it seemed to work, however it only synced starting with A through M. Also, I did NOT have a sync photos option, only a sync contacts option.
I restarted, removed the account, yada yada, probably about 5 times. Sync eventually just stopped working entirely, then it started to sync the FB contacts again, this time A through D.
I removed it yet again, and just said screw it. I'll deal with the problem I guess. Then I remembered on my Moto Droid, and my Eris, syncing FB contacts always seemed to take about a day. So, I added the account again, then just put the phone down. This was about 12 hours ago. I woke up, and all my contacts were synced.
My issue with this was time. If I just added the account, and left it alone, it did it's thing in a time span of about 12-24 hours.