I have the same issue! It appears the Droid has automatically merged many of my contacts to my disliking! In my case, it appears that any contacts that share duplicate phone numbers (home phone #'s) were all merged together. I cannot locate any preference settings that would prevent this from happening.
Vitticeps,
Thanks, I had not done that yet. However, it didn't make the changes. I still don't get why I don't have the option "seperate contact" as others have spoke of???
This is probably my most frustrating aspect of the phone at the moment.