Both, in fact 5) areas
a) Thumbnails not updating from picasa, yet updating ok to google contacts
b) people gallery not even showing thumbnails of some people
c) people gallery shows contacts that do not exist
d) some name tags just plain do not upload when sync to web is on
e) you can't re-use exisiting people contacts in web albums anymore when 
tagging and it only offers ones that have an email address now (Hint: dead 
relatives & babies don't have an email address)

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