What I REALLY want to do is to move contacts from one list to another. This seems to be impossible -- please tell me if it's possible! -- so the next best thing is to add the contact to a new list and remove it from the former list.

I've already figured out how to add a contact to a new list, which can be done from the All Contacts tab. But when I try to remove the contact from the former list, I get a message asking if I want to permanently delete the contact. Obviously I don't want that! So what should I do?