I'm having the same problem. Started today. All the other apps, mail (including gmail), google calendar, internet, all work fine. I can't access the contacts via the "people" widget, and when I press the "phone" I get an error message (I assume it is connected to the contacts) and the option to force close. I am unable to dial out, since there is no keypad showing. I've tried turning the phone off and on, taking out the battery. My storage is not low and I have not received a low storage message. I am hoping to avoid a factory reset. The only thing I did immediately before the problem starting was to download a few apps via the market. These apps have since all been uninstalled. I don't recall making any changes to contacts in the last few days, and I'm unsure how to check to see if there is anything in the notes field, since I can't access any contacts on my phone... are they stored someplace else?
I'm using:
Droid Incredible2
latest update is 2.3.4