The source list pane is located on the left side, below the Navigator pane in Daylite 3.

There are three types of souce lists in Daylite 3:
Lists, Smart Lists, and Factory Lists. 

To get more information on lists and smart lists, please read this article:
http://www.marketcircle.com/kb/idx/0/161/article/


Factory Lists:

Daylite 3 provides three factory source lists for each objects:

    ie.    Contacts, My Contacts, and Recent Contacts or
            Organizations, My Organizations, and Recent Organizations etc...

Contacts:                *All contacts in the database.

My Contacts:         *Returns only those contacts that belong to you.
                                   -ie. Contacts that are owned by you,
                                   ^{('Owner' for the contact is same as the user account you're logged in with)}

Recent Contacts:   *Are the contacts that you accessed/viewed/modified recently.


_{*Same concept applies across all objects -- Organiztions, Groups, Projects, Opportunities, etc..}