Also, if you open the contact (not edit) there is a section for linked contacts for that person. Select that and you might be able to resolve your issue there.
I think the only problem is it won't auto update if anyone changes their picture in FB. If I'm not mistaken this is a limit in the contact application. I had the Epic for a week and was able to ovewrite my google contact picture to the FB one but it never updated when people decided to change their FB picture.