Dave Winer puts his thoughts on why he thinks Google Circles will fail. I have the same problem with Circles (but not necessarily think that it will fail for everybody). As much as I like to be organised, I doubt I will keep on shuffling people from one group to the other. It might start off with a professional relationship (and hence in a circle called Professional) and then move that relationship further into being friends with them. I doubt that I will keep on reshuffling people and will be difficult to manage it after a while. This comes from my experience of using lists on Facebook.
To simplify and if I can foresee value of Google Circles in the long run, I might start off with most of my contact being in the friends circle and then categorising them further from there. With over 1000 online contacts (between LinkedIn, Facebook and Gmail) it can become a job in itself to keep the Circles organised at all the time. Time will tell.
TEJAS PATEL'S LIFESTREAM 