Jim,
Thanks for the reply. Yes I got the phones address book transfered to the new phone so good to go there. As I said I can use the cars address book to dial out on the phone and I did delete the old phone from the selectable phones in the car. At first the new phone got put as the second phone in the cars system so I thought perhaps that was the problem. I deleted both phones from the car and re-registered the new phone in the first slot but still get the same behavior. Odd.
I think your next suggestion of dumping my phone's address book into the car will be the likely fix. When I first got the car last year the phone that I had did not support that function so things were just input manually.
I'll let you know how things turn out. These are the things that keep me awake at night.