<?xml version="1.0" encoding="UTF-8"?><SOAP-ENV:Envelope xmlns:SOAP-ENV="http://schemas.xmlsoap.org/soap/envelope/"><SOAP-ENV:Body><SOAP-ENV:Fault><faultcode>SOAP-ENV:Server</faultcode><faultstring>Method 'SetFieldValue' of business component 'Contact' (integration component 'Contact') for record with search specification '[External System Id] = "20269734050356"' returned the following error:"The value entered in field ZPick_4 of buscomp Contact does not match any value in the bounded pick list Occam Custom Contact 4.(SBL-DAT-00225)"(SBL-EAI-04375)</
I don't even know what ZPick_4 is or what Occam Custom Contact 4.
I've had a similar error in the past. There is a default value set on one of your picklists that is invalid (default value is not a value in the picklist set). It is probably a picklist you don't even use, but because you're creating a record through the webservices it looks at every available field and uses the default value.
Go to your Admin page -> Application Customization -> Contact -> Contact Field Setup and check all the picklists (I think your error is on Indexed Picklist 4). Find the one with a default value that doesn't match an available value and fix it.