Sometimes, the same person is put under different names in different address books. When you import contacts from many sources, you can find that one person is duplicated in contact list. It happens only when contacts are similar, but there are some differences between them. Exact duplicates are merged automatically, and you don't have to worry about them.
Contails can detect duplicates, and show them to the user as a Merge suggestions in the left and right column. If you want to take care of duplicates, just click one of these options.

After clicking Merge suggestions link, you will see a merging form. In the middle column, all merge suggestion will be shown, and on the right column details of chosen suggestion (chosen suggestion is marked blue on the list). You can navigate between suggestions by choosing a suggestion from the list, or clicking Previous/Next links in the right column.

After selecting one of the suggestions, you can choose which details should be included in merged contact, and which should be deleted. You can also exclude a contact from merge process by unchecking a box next to it.
By clicking one of the contacts from merge suggestion, you can check which details come from it - they are highlighted with yellow color. This can help you to determine which details are correct.

If you decide that some of the suggestions are wrong and you don't want to be bothered by them in the future, click Forget this suggestion to cancel one particular suggestion or Forget all link if you don't want to merge any suggested contacts.
If you decided to merge selected suggestion and it's details, simply click Merge to finish the process.