Oops, sorry! Yes, iTunes.
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Do you have your settings right? Check your settings on your device(s).... Settings - iCloud (right under General) - and you should see the toggle next to Contacts say "on."
Also, check the settings on your computer too. If you are on a Mac, go into System Preferences, choose the iCloud icon, and make sure that iCloud has Contacts listed as one of its "on" items. Lastly, check the Mail, Contacts and Calendars icon (it's the blue @ icon) and you can see what is listed next to iCloud.
Yes, I checked my settings and they are correct on my iPad and my computer. I did some more searching and found one person who thinks syncing contacts and calendar with gmail might be mutually exclusive. I don't sync with gmail but I do with my Live account. I was going to try it but when I went to Mail to unsync wilt Live it asked if I wanted to delete the contacts on my iPad. Well, that would have defeated the purpose. If this is correct I guess I'm SOL for iCloud right now. But I had forgotten about Live so iguess it will be ok.
Still doesn't explain why my bookmarks aren't there. That's the next mystery.
Thanks for the response.