I have no more contacts in oulook and no contact folder in People. I thought maybe it was deleated and tried the method mentioned to un-delete below.

1. Sign in your account and go to http://people.live.com.

2. Click Manage and Clean up contacts.

3. Follow the proceeding instructions.

Well, in People there is no "Manage" to click on, therefore no "clean up contacts" either.  There is nothing on that page except a feedback link and a logout link.  Page is comletely empty.