Duplicates should never get genertaed if you are using the out of the box 
settings on an exchange.
Can you open the exchange debug file from /service64/debug folder and check  
the exact number of records extracted from source.
You can email me the debug file I can take a look too.

One more thing which I would like to ask , what is the primary key that you are 
using here ?

-Thanks
Yogesh

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