I have the same issue. I cannot see my contacts but they can see me, and 
actually I am online.
In fact, I can even initiate a new conversation with one of them if I go by the 
menu and do 'Chat/New Conversation', and manually enter his account-id.

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https://bugs.launchpad.net/bugs/676828

Title:
  Contacts does not show up in empathy contact list

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