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Since only the contacts you added are showing up for import, are you sure the original nokia contacts were not saved on the device itself? Then when you set it to save to sim it's only saving new ones to the sim?
Possible way to test that is pop someone else's sim into the nokia and see if you still have your contacts accessable.
The 3GS is fine btw. Much much better hardware than the 3G and still quite usable today imo.
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