Gmail Gadget Fails To Recognize Contact

New to Zoho CRM.

I have set up the Zoho account, matched it up with my Google Apps account. I have received downloads of Gmail contacts.

When I open a gmail email the Zoho gadget does not recognize that the contact is already in Zoho CRM contacts.

I get the message "Sorry, Contact or Lead does not exist." When I go into Zoho, infact, the contact does exist.

Is there a setting in Gmail I need to change?

Thanks.