It is actually a problem with the existing Now Contact program prefs, indicating they need to be refreshed to clear the issue. Installing the new version would have most likely encountered the same issue as it would use the same prefs, and does not replace it on an upgrade. Try refreshing the prefs as follows:

1) Make sure you know where your primary contact file is stored on your hard drive. You'll need to know where it is to set it as your primary file again at the end of this process.
2) Quit Now Contact (if it is running).
3) Open a new Finder window and select Home from the Go menu.
4) Once in your Home folder, go to: /Library/Preferences/
5) Find the file named com.poweronsoftware.nowcontact.plist and move it to the desktop.
6) Find the folder named Now Contact Prefs and move it to the desktop as well.
7) Open your Now Contact file and make it your primary contact file (Launch Now Contact, open the File menu, select Open, make sure there is a checkmark next to the option "Make this my primary file," locate your Now Contact file, highlight it and click Open).
Don Norcross
Technical Support - Now Software Inc