Outlook shared contacts turned private

Here is my scenario:
LAN running NT 4 server and Exchange 5.5 server
user A has outlook 2002
user B has outlook 2000

User A’s mailbox (all the folders) is shared with User B. User B has ownership level permission on all the folders (inbox, contacts, etc)

the problem: everytime user B creates a new entry in user A’s contact, that item becomes private and user B can no longer see it until user A unchecks the privacy box.

I already made sure that the default sensitivity in user A’s outlook is set to normal.

Any suggestions?