The "Archived Contacts" page lists the contacts that have been archived from the "Contacts Screens". You can permanently delete a contact from the system by selecting them on the far right and using the Actions drop-down menu.
Please note that if you are attempting to synchronize a contact from your outlook that appears within this list, it will not be added to the main contacts list. This will happen because the system believes that the contact has been deleted from the system and therefore should not be added again. If you remove that contact from this list, it will be added to the main contacts list the next time you synchronize.