This group is created when Handheld Contact gets installed. This group is created and maintained by Handheld Contact.  DO NOT make any changes or modifications to this group as they will be removed the next time Handheld Contact syncs.  It contains Contacts that you have (and had) activities scheduled with. This group ensures you always have the most important and relevant information on your phone. 

In order to only sync contacts with active activities, you will need to open Handheld Contact on the PC.  Click on Contacts Info and choose Change.  Click on Advanced.  This window is solely based for the Auto-Sync-HHC group.  You can select the option to ‘Exclude CLEARED activities’.  This will eliminate many contacts that no longer have active activities. 

To fully eliminate the ‘Auto-Sync-HHC’ group from syncing, you will need to set a date (from Advanced Options) far into the future.  This way Handheld Contact will begin looking for Contacts/Activities starting on that date.  Since it will be many years ahead, you will have limited (or zero) activities, hence removing all of these contacts and not syncing them.

Note: Please see this LINK to see more info on syncing selected groups.