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When I first looked at the previous version of hosted Zimbra I could not make entries into the GAL
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You cannot make entries into GAL, GAL is the list of accounts that exist in zimbra and/or external ldap directory.
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nor did any of my contacts get displayed when creating new mails
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Your contacts get displayed with auto-complete or when you click the "To:" button -> "Show names from: Personal and Shared contacts" and then put a dot in the search field.