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To begin syncing your Windows Phone 7 contacts, you first need to sign in to a suitable account. If you have already setup a Windows Live or Microsoft Exchange account, for instance, the contacts associated with these accounts will be synced to your mobile.
In order to setup one of these accounts, go to the programs screen (slide your home screen to the left or tap the arrow) and go to Settings > Email & Accounts. Here you can use the Add an Account option to setup a Microsoft Exchange account, or use Windows Live to connect with a Hotmail or Windows Live account.
Other support accounts are Facebook and Google, and by setting up your accounts with these services on your Windows Phone, you can also synchronise contacts. You’ll also notice that Facebook and Windows Live contacts will have their profile pictures synced to your phone, making them easier to find.