On the Desire, when you add a new Contact you cannot customise the label that describes the contact's location e.g. Work, Home, etc. You could do this on the HTC Magic phone but on the Desire you do not have this option.
Anyway, HTC Support were unable to help and then I discovered that on Google's website where you can synchronise the contacts, there is a customise option. So - if you need to customise the Contact's location, you need to add them via the Google website and then synchronise to get it onto the Desire.
Seems a bit long-winded but there you go. Reckon a Desire update would do the trick but its up to them now. I am happy now that I have a workaround as I store lots of phone nos. for different site locations e.g. Reception, Security, Caretakers, Print Room etc.
Hope this explains it better for you. Thanks for asking for clarification.