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Reasonable said:
Does only PSN have duplicate accounts? Can this happen on Live - i.e. one console with multiple accounts registered?

 

Sure, I have an account on my Xbox and so do each of my kids - that's 3 accounts.  But those 3 accounts represent three actual gamers who use Xbox Live.  I've created a few extra profiles for vistors - but those are offline.  The fact that online accounts need to be connected 1:1 with Live IDs strongly discourages you from creating extra online accounts - it's too much of a hassle.

On the PS3 side there's the known fact that many US gamers created EU accounts to get the KillZone demo - and that's just one example.  On Xbox this sort of strategy for accessing content intended for other regions does not work because they validate more than just the account locale - they also confirm where you are really connecting from.