General :: Phone Sync Feature When Enabled Keeps Deleting New Contacts

Having an issue where anytime I try to add a new contact manually for a new phone number or create it using the "create new contact" feature via an old text message by that phone number's owner, my phone automatically deletes it within seconds. This happens only when the sync settings under settings-->accounts & sync-->background information are enabled. The new contact gets deleted regardless whether I add the new contact BEFORE enabling sync or whether I add it WHILE sync is enabled.

Phone's flashed on Gingerbread.