Android or ActiveSync Issue? Contacts Sub-folders


Here is a tester.
I have a sub-folder under my Contacts in Outlook 2010 Plus and am running a Thunderbolt with Android and of course activesync hooked into my exchange 2007. Android or more over activesync will not allow me to view sub-folders under my Contacts and even though they are there in Outlook cannot search them either.
Is this a limitation on ActiveSync or Android? Our company Blackberrys can see the contacts and search them.
I need to be able to see the sub-folders and search them or at least be able to search them from my SmartPhone.