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The "Google" type contacts are the ones that have been pulled down from your Gmail contacts. The "phone" type are the ones that you yourself have added to your phone.

You can create "google" contacts on your phone as well. From what I understand, the "google" contacts will sync with gmail, the "phone" contacts will not. I dont have any "phone" contacts, so I can not verify that. Anyone know for sure?
 
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