I have a small handful of contacts with the word "and" in them (not the ampersand symbol), for example, for a husband and wife the contact may be "John and Patty" in the First Name. It's showing up in my contacts under "a", just after "A", as "and Patty Smith, John".
I've re-imported after the most recent update, and sorted contacts by Last Name. So it appears that it is treating everthing from the "and" on as the Last Name?