If you care about the quality of your media, you have noticed that your Google contact photos when synced back to your phone are awful and pixelated. This app is just for you. It keeps a backup of your high quality contact photos in a Picasaweb album called "Android Contact Photos".
After install, to enable the sync, go to System Settings>Accounts & Sync>Your account and tick "Sync Contact Photos". You should then see a notification that asks you to allow the app to access your Picasaweb account. From now on, every eight hours your contact photos are synced.
For folks who are used to assigning contact photos through Picasa software on PC or through browser, you can upload a perfectly square photo up to 1500x1500 pixels in JPEG format to the mentioned album with a caption of the name of your contact. On the next sync, it will be automatically assigned to your contact on the phone.
I'd love to help anyone who has issues with the app. However you need to email me for that as I can't get back to you through the comments on this site.
This app is free software. Free as in freedom, not free chips. The source code of this app is released under GPLv3 and can be downloaded from https://github.com/oxplot/contactphotosync
NOTE TO USERS WITH ROOT ACCESS: the max. resolution that android allows is 720x720 and 75% JPEG quality. Hardly impressive if you ask me. You as a root user can use the bundled UI to assign photos up to 1500x1500 pixels with 95% JPEG quality. Be warned though, the root functionality is very unstable and you may encounter strange behavior. If you deny root access to the app, it will operate as usual.
* Added Portuguese translation (by Diego Duarte de Oliveira)