Here is my controller and test code.  My question is does the test class have to create an instance of the controller?  Thanks for all your help.

Code:

//Controller class
public with sharing class ContactGridController {
    
    //variable declaration
    private ApexPages.StandardController controller {get; set;}
    public List<Contact> searchResults {get;set;}
    public string searchText {get;set;}
    public String selectedUser {get;set;}
    public String Golf = '';
    public List<SelectOption> userList;
    
    // standard controller - could also just use custom controller
    public ContactGridController(ApexPages.StandardController controller) { }
    public ContactGridController() { }
 
    //get Users method and returns List of Users 
    public List<SelectOption> getUsers() 
    {
    	List<User> usrs = new List<User>();
        try
        {
        	if (userList == null) 
        	{
            	usrs = [select id,firstname,lastname from user order by firstname, lastname ];

            	userList = new List<SelectOption>();
            	userList.add(new SelectOption('NoValue', '-Select One-'));
            
            	for (User u : usrs) 
            	{
            	    userList.add(new SelectOption(u.id, u.firstname + ' ' + u.lastname));
            	}
        	}
    	}
    	catch (Exception e)
    	{
    		String eMessage = 'System Message: ' + e;
    		System.Debug(eMessage);
    		ApexPages.addMessages(e);
    	}
    	return userList;
    }
    
    //get Golf value and return value
    public String getGolf()
    {
        return Golf;
    }
  
    //set method that sets value = Golf
    public void setGolf (String value) 
    {
        this.Golf= value;
    }
    
    // fired when the search button is clicked
    public PageReference Find() 
    {
        try
        {
       		String qrySeed = 'select c.AccountId, c.Name, c.Email, c.ChristmasCards__c, c.GolfTournament__c, ' +
        	'c.ClientAppreciation__c, c.InfoNewsletter__c, OwnerId from Contact c where c.isdeleted = false ';
        	String qryEnd = 'order by c.name limit 1000'; 
       		String qryB, qrySearch;
        	String qry;
      	        
        	if (selectedUser == 'NoValue')
        	{
        	    qryB = '';
        	}
        	else
        	{
        	    qryB = ' and c.OwnerId = \'' + SelectedUser + '\' ' ;
        	}
      
        	if (searchText == '')
        	{
        	    qrySearch = '';
        	}
        	else
        	{
         	   qrySearch = ' and c.Account.Name LIKE \'%'+ searchText+ '%\' ';
       		}     
     
      		qry = qrySeed + qryB + qrySearch + qryEnd;
      		searchResults = Database.query(qry);
        }
        catch (Exception e)
        {
        	System.Debug('Error running query.  Please try your query again.');
        	System.Debug('System Message: ' + e);
        }
        return null;
    }
 
    // fired when the save records button is clicked
    public PageReference save() 
    {
        try 
        {
            update searchResults;
        } 
        Catch (DMLException e) 
        {
            ApexPages.addMessages(e);
        }
        catch (Exception ex)
        {
        	ApexPages.addMessages(ex);
        }
 		return new PageReference('/apex/ContactsGrid_cvf');
    }
 
    // discards changes made to grid
    public PageReference discard()
    {
        return new PageReference('/apex/ContactsGrid_cvf' );
    }
  
    // takes user back to Home tab
    public PageReference cancel() 
    {
        return new PageReference('/home/home.jsp' );
    }
}

 Test Class:

/**
 * This class contains unit tests for validating the behavior of Apex classes
 * and triggers.
 *
 * Unit tests are class methods that verify whether a particular piece
 * of code is working properly. Unit test methods take no arguments,
 * commit no data to the database, and are flagged with the testMethod
 * keyword in the method definition.
 *
 * All test methods in an organization are executed whenever Apex code is deployed
 * to a production organization to confirm correctness, ensure code
 * coverage, and prevent regressions. All Apex classes are
 * required to have at least 75% code coverage in order to be deployed
 * to a production organization. In addition, all triggers must have some code coverage.
 * 
 * The @isTest class annotation indicates this class only contains test
 * methods. Classes defined with the @isTest annotation do not count against
 * the organization size limit for all Apex scripts.
 *
 * See the Apex Language Reference for more information about Testing and Code Coverage.
 */
@isTest
private class tContactGridController {
	
	static testMethod void tUsersList()
	{
		List<SelectOption> userList;
		List<User> usrs = new List<User>();
        try
        {
            if (userList == null) 
            {
                usrs = [select id,firstname,lastname from user order by firstname, lastname ];

                userList = new List<SelectOption>();
                userList.add(new SelectOption('NoValue', '-Select One-'));
            
                for (User u : usrs) 
                {
                    userList.add(new SelectOption(u.id, u.firstname + ' ' + u.lastname));
                }
            }
        }
        catch (Exception e)
        {
            String eMessage = 'System Message: ' + e;
            System.Debug(eMessage);
        }
        
        System.Assert(usrs != null);
        System.Assert(userList != null);
        
	}
  	static testMethod void tLoadContacts()
  	{
  		//create test account to tie to test contacts
  		Account test = new Account(name='TestAccount',ShippingCity='Houston',ShippingCountry = 'USA', ShippingPostalCode = '77477', ShippingState = 'TX', ShippingStreet = '123 Any Way');

		//create 200 test contacts
  		Contact[] contacts = new Contact[0];
  		for (Integer i = 0; i < 200; i++)
  		{
  			contacts.add( new Contact(AccountId=test.id,
  			FirstName = 'tJohn',
  			LastName = 'tJones',
  			Email = 'tJohn.tJones@yahoo.com',
  			GolfTournament__c = false,
  			ChristmasCards__c = false,
  			ClientAppreciation__c = false,
  			InfoNewsletter__c = false) );
  			
  		}
  		//insert contacts
  		try
  		{
  			insert contacts;
  		}
  		catch (System.Exception exContacts)
        {
        	System.Debug('Contacts failed to insert');
        }
  		System.Assert (contacts != null);
  	}
  
  	static testMethod void tPositiveRun()
  	{
  		//get contacts for updating
  		List<Contact> searchResults;
        String qrySeed = 'select c.AccountId, c.Name, c.FirstName, c.LastName, c.Email, c.ChristmasCards__c, c.GolfTournament__c, ' +
           'c.ClientAppreciation__c, c.InfoNewsletter__c, OwnerId from Contact c where c.FirstName like \'tjo%\' and c.isdeleted = false ';
        String qryEnd = 'order by c.name limit 200'; 
        String qry;
        qry = qrySeed + qryEnd;
        
        System.Debug (qry);
        
        try
        {
        	searchResults = Database.query(qry);
        	
        	//make changes to contacts info
  			for(Contact c : searchResults)
            {
                c.GolfTournament__c = true;
                c.ChristmasCards__c = true;
                c.ClientAppreciation__c = true;
                c.InfoNewsletter__c = true;
                if ( c.Email != null )
                {
                    c.Email = c.Email.replace('.com', '.net');
                }
                else
                {
                    c.Email = c.FirstName + '.' + c.LastName + '@yahoo.com' ;
                }
            }  //end of for loop
            
            upsert searchResults;
        }
  		
  		catch(DMLException exDML)
  		{
  			System.Assert( exDML.getMessage().contains('Maximum Limit exceeded'), exDML.getMessage() );
  		}
  		catch (System.Exception ex)
        {
        	System.Assert( ex.getMessage().contains('Maximum Limit exceeded'), ex.getMessage() );
        }
        
  			
  	}//end tPositiveRun
  	
  	static testMethod void tNegativeRun()
  	{
  		//get contacts for updating
  		List<Contact> searchResults;
        String qrySeed = 'select c.AccountId, c.Name, c.FirstName, c.LastName, c.Email, c.ChristmasCards__c, c.GolfTournament__c, ' +
           'c.ClientAppreciation__c, c.InfoNewsletter__c, OwnerId from Contact c where c.FirstName like \'tjo%\' and c.isdeleted = false ';
        String qryEnd = 'order by c.name limit 200'; 
        String qry;
        qry = qrySeed + qryEnd;
        
        System.Debug (qry);
        
        try
        {
        	searchResults = Database.query(qry);
        	
        	//make changes to contacts info
  			for(Contact c : searchResults)
            {
                c.GolfTournament__c = true;
                c.ChristmasCards__c = true;
                c.ClientAppreciation__c = true;
                c.InfoNewsletter__c = true;
                if ( c.Email != null )
                {
                    c.Email = c.Email.replace('.com', '.net');
                }
                else
                {
                    c.Email = c.FirstName + '.' + c.LastName + '@yahoo.com' ;
                }
            }  //end of for loop
            
            upsert searchResults;
        }
  		
  		catch(DMLException exDML)
  		{
  			System.Assert( exDML.getMessage().contains('Maximum Limit exceeded'), exDML.getMessage() );
  		}
  		catch (System.Exception ex)
        {
        	System.Assert( ex.getMessage().contains('Maximum Limit exceeded'), ex.getMessage() );
        }
        
  			
  	}//end tNegativeRun 	
  	
  	static testMethod void tCancel()
  	{
  		PageReference page = new PageReference('/home/home.jsp');
  		Test.setCurrentPage(page);
  	}
  	
  	static testMethod void tDiscard()
  	{
  		PageReference page = new PageReference('/apex/ContactsGrid_cvf');
  		Test.setCurrentPage(page);
  	}
}