Hello MikeySectra, Contacts marked as Private in Outlook will sync over to ACT!, where they will also be marked as Private. If you have some contacts in Outlook you do not want to sync to ACT!, then you will need to move them into a custom contact folder in Outlook, since ACT! will only sync with the main Outlook contact folder.
Note: Effective 6/1/13, Sage no longers provides support for the Act! software. This is now provided by Swiftpage.