Duplicate Accounts created when using QIF Import

[Carl Moller]

I am using the QIF Import utility and coming up with some rather strange 
behaviour.
1) I load the import function and select my qif file. It asks for an 
account name. I select "Forward".
2) I don't load any other files (just testing here)
3) "Match QIF accounts with GnuCash accounts": I select my account 
manually: Current Assets: Current Assets Carl: PCF Vacation
4) Match QIF categories with GnuCash accounts; there is nothing here to 
select. so I go "Forward"
5) Match payees/ memos to GnuCash accounts: Here I select
   Income:Interest Income Carl: Savings
    for the "INTEREST" memo. and
   Assets: Current Assets Carl: PCF Chequing
     for the "TRANSFER IN" memo.
   I hit "Forward" and "Apply"

and here is where things get all messed up.
Now I have a bunch of new accounts created:
  -> Current Assets: Current Assets Carl:PCF Chequing 2 - with a 
description: QIF Import: Name conflict with another account.
-> Current Assets: Current Assets Carl:PCF Vacation 2 - with a 
description: QIF Import: Name conflict with another account.
-> Income: Carl's Income:Interest Income Carl: Savings Interest 2 - with 
a description QIF Import: Name conflict with another account.

So am I doing something wrong here or is this just a bug?
Thanks for your help!
Regards,
Carl