wiki:PublicPrivateContactsOverlapping

Public / Private contacts in overlapping groups

There is one further problem that was referred to Apple for comment. When contacts belong to both shared and private groups, it can happen that the contact is removed form the private group. The problem is less apparent in “Change” mode, however does still happen. The next major stable release is currently on hold waiting for a solution for this problem. This problem has also been reported to Apple, who identified it as a bug in 10.5 and most likely 10.4. (Bugs ID# 6634631 and 5978011). We are still investigating the status of this issue on 10.6.

The latest release of Address Book Server (March 23rd onwards) has a fix for this issue implemented. If you are upgrading from a release prior to this ensure you disable and re-enable the clients in System Preferences. This is a critical step required to prevent loss of data.