If I search Google for "keyword suggestion service", one of my seo tool pages comes up on page one TWICE. Take a look here http://www.google.com/search?hl=en&l...estion+service
For some reason Google is indexing the url with and without capitals as different pages. "http://www.searchbliss.com/SEO-Tools/" & "http://www.searchbliss.com/seo-tools/" like they're two different pages. G did this with a lot of my seo tools. Why? For such a "smart bot" you'd think it would ignore caps in URLs.

Now you have done it ... Google is going to see your post and erase it and check into why their "Smart Bot" is doing it! Sure ... just go ahead and ruin it for everyone! HAHAHA

The question now is, will G penalize my site for "duplicate content" or will G take responsability. Will this help or hurt?

True ... That is the question that we must ask ...

*nix servers are case sensitive for filenames, Windows servers are not. So the search engines have to be case sensitive to allow for both eventualities.
Therefore SEO-tools is not the same as seo-tools or Seo-Tools or SEO-TOOLS or any other combination of case.
So we can conclude your site is on IIS and somewhere in the WWW someone has a link to the page with mixed case, maybe even yourself

sounds a good case for a little asp redirect in the page to correct it, just to avoid the dup filter picking the wrong one.

G will not penalize but more probably it should not penalize for a very simple reason that if you are on Win server you can acess the same page with the Caps on and OFf URL.

That's good to know, thanks. Also I have checked my site to see if it on my end (the mixed cases) and it is not. However, the cached mixed case SEO-Tools are linked with SEO-Tools. These pages are really outdated in G's cache.