I have had no problems with IOS5 and Lion upgrades and them working well with 
iCloud.  On the other hand, I have an iPhone 3G and it does NOT like the Cloud 
at all. Can't get it to synch with iCoud but rather have to set it up to synch 
my contacts with my Google list.  If it is not on my computer it won't synch.  
That is more a hardware/not IOS5  problem(s).  More a burdensome issue than 
anything else. I spent about 40 minutes with a genius at the Apple Store before 
came up with the answer.  It is what they are recommending for 3G iPhones, or 
exporting importing.  Nothing elegant at all but it works.  

I am planning on waiting till after Christmas to get a new phone.  The price 
goes way down for me then.  I think I can work with my fixes till then.  

Richard


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