Here is something that surprised me a few times, when I tried to add contacts on the Android emulator for some tesing.
I would open the Contacts application, it would say that () there were no existing contacts, and ask me to add new ones using the menu option “New Contact”. I would enter all the details, press “Done”, and nothing would happen! It would simply come back to the previous screen and again repeat .
It seems that it was creating the contact alright, but just not displaying it because the relevant configuration was not done. There is another menu option next to “Next Contact”, called “Display Options”. You need to go there and enable the display of the contacts you are interested in under the category “Choose contacts to display”. Phew!