Hadn't noticed this until today. Although my call register displayed received numbers as the correct contact name, SMS's I received were not. :( They were coming through with the country code up front. This is a major issue as I receive many SMS's each day.

But have no fear..there is a solution. Just follow these steps.

1. Download the required patch files by clicking here or here.
2. Create a directory named "Support" in the /System/Library/Frameworks/AppSupport.framework/ directory on your iPhone.
   
3. Copy the "AppSupport" and "AppSupport.original" files from the zip file to the /System/Library/Frameworks/AppSupport.framework/ directory on your iPhone.
   
4. Copy the "PhoneNumber.dylib" and "PhoneNumberTemplates.txt" files from the zip file to the /System/Library/Frameworks/AppSupport.framework/Support/ directory on your iPhone.
   
5. Optimize the "PhoneNumberTemplates.txt" file on your iPhone by moving all templates for your country to the top of the file and/or removing templates for countries that you don't need.
   
6. Reboot iPhone.