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Based on the following bolded statement from http://www.htc.com/ca/faqs.aspx?p_id=269&cat=78&id=99764 , I'm not sure you can do that with stock software...
How do I copy Contacts from my SIM to my phone? To copy contact entries between the device memory and the SIM card, follow these steps: Note: Only copying from the SIM card to the device is supported.
From the Home screen, tap the Contacts icon.
Press Menu and select Import Contacts.
Perform one of the following:
Move one at a time: Press and hold on and select Import from the pop up Menu.
Press the Menu key.
Tap Import all. If you want to get the contacts off your phone, what I suggest is to synch your contacts with your Gmail account, and export from there to a .csv or .ical file.
Another way to do it is to go to the marketplace
and download the "contact exporter" app, then export contacts as a .csv file. then
you can log into Gmail and import all those contacts from the same .csv
file. this will automatically sync over the air with your another Android phone. Very easy.
The G1 can definitely import contacts from the sim card, to do this you press menu while in the contacts application and then press import contacts. However I don't think it can save contacts on the sim card, because it already automatically saves them to your GoogleMail. So at least your contacts are backed up onto your GMail account.
By using Avtivesync (Windows XP) or Windows Sync Center (Vista). If you use MS Outlook on your computer, the handheld and the desktop will request to create a partnership. All contacts on your handheld device and desktop will synchronize. If you need instructions, please let me know your desktop operating system.
Since the SIM card is automatically read when inserted, verify it has been correctly inserted. If you have another phone available, try inserting it in that phone. If you can make a phone call, the card should be working. If not, your card may need to be replaced.