I imagine that what you are seeing is not a duplicate contact but multiple entries for that one contact in the Outlook Address Book. THis is perfectly normal, because Outlook considers fax numbers to be valid electronic addresses, since there are many client- and server-based components that can use such addresses.
One method to hide fax numbers from the address book is to prefix the fax number with one or more letters (maybe B for business fax, H for home, O for other). If the fax number begins with a letter, Outlook won't show it in the address book. This definitely works in Outlook 2000 and 2002.
There are a couple of utilities that can help you hide fax numbers from the address book. See
http://www.rsoutlook.com/us/rshifa.htm and
http://www.sperrysoftware.com/Outlook_Solutions.htm (Hide Fax Numbers).
Another way to avoid avoid having fax numbers appear in the address book is simply not to enter data in the fax fields. Put fax numbers in some other (non-phone) fields.
Microsoft has a Knowledgebase article at
http://support.microsoft.com/?kbid=305361 that explains further. Note that this is behavior is normal for Outlook 97 and for Outlook 98 and 2000 in Corporate/Workgroup mode. It's a big change, though for users upgrading from Outlook 98 and 2000 in Internet Mail ONly mode.
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Sue Mosher, Outlook MVP
Author of Configuring Microsoft Outlook 2003
and Microsoft Outlook Programming - Jumpstart for
Administrators, Power Users, and Developers