Glad you figured it out. I would have hoped that Marketo would handle that condition more gracefully. We've had a similar fail when converting or merging 2 Leads / Contact in SFDC, but prior to the merge, the email address is deleted from one of the SFDC records. The result is that the Marketo leads are not merged and you wind up with an "orphan" lead in Marketo that can't be merged into another record.