i had asked the same question . no replies. i have come to the conclusion that it is not a possibility to arrange by last name . i think it may be because the contact list is so tied to facebook and facebook is a first name type arrangement just a guess
Yeah, I ended up finding out that it's not possible with the regular contacts list. I saw a contact list app, but didn't really check it out. I'll have to check into it and report back, unless someone beats me to it.