Problem

Unable to sync Exchange mailbox server (2003) contacts with Blackberry 9700

Solution

Option 1

To force your Contacts to resync wirelessly you can open Contacts > Press menu > Select Options > Type RSET (nothing will appear as you type) > When prompted select Yes to wipe your contacts and reload them from the server.

Option 2
If you want to use Desktop Manager open Contacts > Press menu > Select Options > Select Desktop > Change Wireless Sync to No > Exit and Save > Use Desktop Manager to sync your contacts.