i have encountered this. here's the catch. you have your SIM numbers, PHONE numbers, GOOGLE numbers. . .all of those 3 types MUST be sync, i mean in order for your contacts to be updated.. (right?) BUT, the problem is, EVEN if you use OR display ONLY GOOGLE OR PHONE or SIM contacts, still when you search for a contact, the 3 items would still be displayed.
eg. i CHOSE the "contacts to display" --> PHONE
since my PHONE contacts and SIM contacts are in SYNC, the results upon typing any of my contact would be :
contact name1 (then the sim image)
NOW, since the 2 are identical, even if you place a PHOTO on your CONTACT (im sure it will be on phone type since the SIM contact could not handle photo) , upon opening GOSMS, the PICTURE would Still not appear. . WHY?? because i believe, GOSms' own contact list displays BOTH the PHONE and SIM.
so GoSMS' would be confused on "what" contact type did you placed the PHOTO. . .
SIM contact names AS IS.
just DISPLAY PHONE CONTACTS
your contact name1 must be re named, to contact name_1 (sample)
in this case, you have the same CONTACT number BUT saved in different name.
by the time you placed a picture on the PHONE CONTACT : contact name_1, GOSMs would display the picture.
not sure with GOOGLE contacts. have not tried synching them with PHONE + SIM