Found the bug or issue - is there a bug # or issue open for this?
Here is how I got the bug to show itself.
1. originally imported PST file and all pics were in address book
2. I updated some contact info for a contact in zimbra web interface - it synced using zimbra mobile to phone and the contact lost its picture on phone but remained in zimbra.
3. I re-added the picture on phone and it came back on phone and remained in zimbra.
4. I updated contact info again in zimbra and it removed the picture again on the phone
- D2G