No problem:
1. No, I am not using the same directory
2. Yes
3. Yes
4. If I try deleting one that says "Chris Jennifer Justin 1st page", the copied version (which says the same exact thing) will disappear. I have checked both files and they are the same exact file. If I try to rename the one that says, "Chris Jennifer Justin 1st page", the copied version changes it file to the same exact name.
I tried to move one copy of each file (5 total files) to a thumb drive and delete all 10 files from the computer and then move the 5 files from the thumb drive back into the folder, the system generates the second file again.

You believe the suspected duplicate files are in two different folders.
Please give the full path, starting with the drive letter.
I believe you are seeing the files in two different subdirectories in your folder tree, one being a system folder containing only a shortcut in the "Pictures" library. So, one real file and a simple shortcut created by Windows in the C:\...users\[your name]\Pictures...system folder.
It's like an object and its shadow... The shortcut or the full path file are not duplicates, and it's a Windows feature, nothing to do with Elements.
A personal tip:
I never store my photo files under the default "Pictures" folder. I create a new folder just under the letter drive, something like C./ or E:/My Photos.