IPhone not showing contacts names in text messaging after sync AND reset

Three days ago, I bought the iPhone 4S as an updgrade from the 3GS. I also transferred my wireless service plan from AT&T to Verizon. Since doing that, very strange things are happening. For example, my contacts appeared to transfer without a problem, but whenever I attempt a call to a number that does not have a "1" stored in front of it, it tells me that I am attempting a long-distance or international call and the call won't go thru unless I place a 1 in front of the number and store it that way. Also, whenever I send text messages and someone replies, their message comes back to my phone under the phone number only and not the name that is stored in my contacts. This happens even when the contact sends a direct message to me that is not a reply. (Imagine all the "Merry Christmas" messages I received yesterday that I have no idea who they were from, except the 5 out of 300 contacts whose numbers I have memorized!!) I have gone to the Apple Store and the "Genius" there reset my phone, which temporarily fixed the problem, but now it is back. I did a soft reset, now it randomly selects which names will show up in my text message window. (For example, yesterday, the name "Jane" shows a message that says "Merry Christmas", but after the reset, only Jane's number shows up in the text screen with the same message from yesterday.)
Does anyone know what in the world is going on?? This is Very Annoying! I'm tempted to go back to AT&T, as I am being told that the iphone technology, even for 4S, is not as compatible on Verizon as it is with AT&T. Please help!

Not sure about the random contact name problem. I suspect a bad database. Use iTunes to delete and replace your contacts with a good list. If that doesn't work, do a 100% software reset and don't restore a backup, setup as a new device. Finally, if that fails go back to the apple store. The issue is not software fixable and the unit should be replaced.
The other issue with 1 dialing required... are you roaming? Disable wifi, should say Verizon 3G in the status bar.
When you are off your home area cell network, you are not dealing with Verizon directly.
Edit: your last question about using a Verizon 4S on AT&T's network. You are correct, out of the box the Verizon 4S is locked to only work on Verizon's network. The AT&T 4S and Sprint 4S have the same locks. You can purchase an unlocked iPhone directly from apple. I've also heard of people convincing Sprint customer service to unlock their phones for use out of the country,

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iam facing this problem of my e52 not showing contacts names in inbox.
Some of the contacts name are shown, those which was originally in my phone memory.
because i do a lot of trading, i constantly adds new numbers to my contacts from the sms they sent. But the main problem is here is even after i added their contact giving them names, the names doesnt show up in inbox, its still just numbers.
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This happens to me too when I store the number under two names, or the synchronization creates double entries, for example:
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Re 1) I have seen this reported but maybe not as clearly as your post.
No-one seemed to make it clear the Contacts were in the Address Book (Contacts app) and that it seemed to be ignoring the Names for just the Numbers.
Obviously you can use the View Menu > Messages > Show Pictures and Name (or Show Names)
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The options are:-
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If you make sure you are sending to an Apple ID what do you see ? (Apple ID or Real Name or in fact the iPhone number again)
This may be because you have lost the ability to "read" the saved data for the Contacts app.
B) Check the Contacts app and see if it is Syncing properly with any iOS device (i.e that all items have the Name as well as an iPhone number in the Address Card.)
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IPhone not showing contacts names in text messaging after sync AND reset

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