Look in Settings -> Friend Collections

Friends picker will let you select your friends just by clicking on the alphabets. It wont suggest friends.

Thanks Ismayil & TeamWebgalli

It turns out that the input/userpicker was broken in elgg 1.8.0.1. I used 1.8.2 and it works

The biggest problem with godaddy is the chaos. They've grown too fast, and they've been adding services on top of each, which created an absolute mess. They haven't thought their model through, and as a result you can never find what you need, and if you do it's some custom solution that they have programmed in-house and which has a million disclaimers / footnotes on how to use, how to customize etc.

a2hosting offers you a normal cpanel access, which is far better than any custom solution that can be offered by a hosting company. Clients of mine also use heartinternet. They offer a very good service, the only downside is a custom management console.

Thanks Ismayil I went with Arxive and put your reference. Matt thanks for your feedback I liked hostgator too but Arxive was offering better powered virtaul server at the same cost and had few extra services. 

Well, I have good experience with GoDaddy VPS 30 USD/ month. It is really working great for me.