Hi All
I've had my Desire a few months now and came across a few of the issues above, and have come to a few conclusions. The Sync of pictures to contacts and favorites seems to be automatic if a contact has their phone number on their FB profile, not instant, may even only do it when the phone is switched off and back on, but it does do it. Contacts on FB that don't have their number stored on FB won't change. However I downloaded the Facebook Syn app from the market place and ran this. It will then update your pictures. May need a reboot of phone to take effect. Would be nice if it did it automatically, but it doesn't for now, but this is a reasonable work around.