Nokia Lumia 800 device Contact Sync with MSN Live

Question

How does the sync from device to MSN live work in the Nokia Lumia phone?
If you purchase a Nokia Lumia, and the dealer synchs your old mobile phone contacts to Nokia Lumia using the contact transfer. In this process you have lots of stale contact which you don't want to retain. Now Lumia doesn't have pc connectivity software like earlier PC Suite or Ovi suite. these were the wonderful piece of sw, and you could update your contact, store on the outlook, and transfer then to and from the device.
But with Lumia you are at fix now. the only way currently appears to be deleting one by one from device.
There is a MSN account, and if you have a data connectivity then you can synch your contacts to your live account. Now you have the backup of the contacts in the server, which fortunately can be imported and exported from/to and excel.
I thought of using this for the bulk update of contacts, and the technical support team says, that if you delete the contact from the server, while switching your data connectivity from mobile, and then put it on, the new state will be, the device contacts will come to server, and the server contacts will go to the device. which means the contacts will get swapped. I somehow couldn't believe in this definition of synching, and I believe, the synching will then keep the sum of the two contacts in both the location, which means the server will be again full. and so will be the device.
Can anybody tell how does the synching works for Lumia with Live account? so that I can update my contact list on bulk?
I also request Nokia to provide a local piece of sw like PC Suite for the Lumia device, this will increase the sale significantly.  
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Answer 1

You wont have 600 contacts in Hotmail server because you deleted them, and when you delete even one contact in Hotmail then it gets deleted from NLM because I tried it just now.  I deleted one contact a supermarket number when the phone was switched on and another contact with the phone switched off.  When I switched on the phone the contact disappeared from the phone.
So from this we know that if you delete all of your contacts on your Hotmail then your Nokia Lumia contacts will all be deleted from Nokia Lumia too, apart from the Facebook and Twitter contacts in the People window.
In Microsoft Outlook you can select a whole range very easily and export to .CSV format to upload to Hotmail, if you have Microsoft Outlook I think this is the most powerful and effective way but needs a few steps to do it depending on which version of Outlook you have.
For Microsoft Outlook 2007 and 2010, edit all of your contacts then go to the "File" menu, then click on "Options", then click on the "Advanced" button on the left side of the window that pops up.  After that move to the "Export" section on the right of the screen and click the Export button.
Now a menu opens.  You choose "Export to a file", then choose "Comma Seperated Values (Windows)", then choose the "Contacts" folder from the list that opens after that.  You will be shown a box to name and save the file that Outlook is about to make. 
When you save the file remember where it is, then go to Hotmail and look for the "Manage" button above the list of contacts, when you find the button click it and choose "Import" from the menu that opens up.
After that you will be taken to a different page, look for the words "Add people from other services" and underneath that is a list of pictures and one of those pictures has the word "Outlook" next to it.  Click on the word "Outlook".  Then you will be taken to a new webpage.
When you reach the new webpage make sure you look at the words on that webpage called "Step 2" and make sure there is a green dot beside the words "Microsoft Outlook (using CSV)".  Now go to the words called "Step 3" and you will see a button called "Browse".  Click on the "Browse" button and then a box will open up asking you to find the file you exported from Microsoft Outlook, which I explained how to do earlier.
You can also use this process to export calendar from Microsoft Outlook to Hotmail, which will then sync the calendar on your Lumia phone too.