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I have an iPhone 4S, so not sure we're running the same version of iOS. However, I think the following has always applied...
In the Settings app, there's an option for "Mail, Contacts, Calendars". If you go in there and scroll down to the "Contacts" section, just under it there may be an item for "Import SIM Contacts". Is this perhaps what you are after for the first issue?
Cheers,
Marc
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