To all interested, I found the solution(s).
TO REMOVE ATT CONTACTS - this must be done online as opposed to the desktop manager.
You must sign into their site at AT&T Address Book - Safe and Accessible Contacts - Wireless from AT&T
. For some reason, it takes a few minutes. >> click on the settings tab >> then click on the "sync" button >> then delete your contacts.
TO DELETE CONTACT LISTS for your device - go to contacts - click Options - then type "rset" (that's not a typo). A screen will pop up to verify if you want to wipe the contacts. Select yes. You can now use desktop manager to repopulate contacts.