Default People vs Search People

When i go to People i can see my sim contacts as well as those contacts i have linked up with Facebook (not much only about 5 users so far) when i click on search people or the phones folder, i have all my facebook contacts and sim contacts. How can i filter or delete the records of my friend contacts?

when i press menu button when im in search contacts nothing happens.

How to effectively manage the contacts i want to view and have on my phone if i've got 1000 friends but i only want 200 on my phone? can i selectively sync the contacts?

I find contacts managment a bit tough to get a hold of. My search is flooded with my facebook contacts but locally on the phone (i think) i just have the sim contacts