I ran into this error upgrading a Storm to an Droid 2. Here's what I learned.
1. The Storm had an old OS, one that had never been upgraded during ownership. When I installed Blackberry Desktop Manager it wanted to push out the latest OS - so I realized that may have been part of the problem.
So anyone running into this problem might want to consider upgrading the Storm OS. It seems a lot of work given that you are going to throw the phone in a drawer, so onto #2.
2. In desperation I googled Blackberry Android and found an article on what you should know when upgrading from one to the other. The article mentioned Google Sync - so I downloaded that on to the storm, then synced to the Gmail account. That pushed up the contacts.
After I activated the Droid 2, I was forced to sync to Google as part of the install - and sure enough, the contacts were there. I could have saved a couple of hours researching this error and on the phone with the VZ Helpless Desk had I read this article first.
So anyone running into this error in the future, try the above solutions before you waste your time like I wasted mine. And oh, if you have any doubts about upgrading from the Storm to Android, set them aside. I can't believe I suffered with the Storm for as long as I did. When I switched to the Droid X it felt like I had been swimming with one arm tied behind my back, and with the Droid X I suddenly felt like I not only had both arms, but flippers too.