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We ran into this same issue with SugarCRM. To alleviate the issue until you can correct the issue with the connector, I would suggest turning off the sync to Salesforce and determining what is causing the duplication. For us, the duplication was happening everytime a prospect record was viewed.
Is there a smart campaign in Marketo which is adding contacts to a queue in SFDC? This is pretty common way for duplicates to be created. If so, you can either use the choice If SFDC Type is empty on the Sync Lead to SFDC flow step, or call Support and have us turn that off for you.
Here is some info on how RingLead can help with Marketo duplicates.
RingLead has over 100 joint RingLead/Marketo customers.
Dupe Dive is a free Salesforce duplicates Lead diagnostic that will give you duplicate Leads by source metrics that you should find useful as you develop your Data Plan.
If you are just getting started with Marketo, you might like this Three Cool Things You Can Do With Marketo Webhooks presentation.
Here is a great blog post about the automate vs. intervene decision marketers need to make when it comes to data quality tactics.
If you'd like a trial of the RingLead apps, please let us know.
So, the thing that strikes me as odd about this is that Marketo can't create new Contacts in SFDC. Full stop. The most Marketo can ever do is convert an existing lead into a new Contact, and you need an explicit flow action to do that.
If Marketo recognises an existing Contact it will dedupe against that record and update it if that Contact does something new, but it'll never create a new one. It will only create leads. So the statement "Marketo is creating duplicate leads AND contacts" seems odd to me.
When you say you are new to Marketo, did you just sync your SFDC instance with Marketo? By any chance did you have data in both systems when the two were synced?
In any case, this sounds like an issue that will take some time and investigation to resolve the cause, I'd go either immediately to Marketo Support, or ping your enablement consultant.
"Is there a smart campaign in Marketo which is adding contacts to a queue in SFDC? This is pretty common way for duplicates to be created. If so, you can either use the choice If SFDC Type is empty on the Sync Lead to SFDC flow step, or call Support and have us turn that off for you."
Does this mean that if a lead already exists in SFDC, then runs through the flow step "Sync Lead to SFDC" with Assign To: Some Lead Queue, a new lead will be created?