Okay heres what happened. This happens on my phone as well. The Droid, being the "smart" phone it is, starts merging contacts. So pretend you have someone as Billy and another person as William. The Droid will automatically adjoin these nicknames and real names into one contact "William". What you have to do is find the people who have nicknames and "real" names combined and separate them by going to edit contact and doing split or something like that.
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