I want to bump this because I have the exact same problem.
Recently switched from Blackberry to Android and I never had this problem with my BB. I type a letter to the start of someones name and the list of people with that letter comes up first in alphabetical order.
Ie. I type A, and I would get alex, andrew, ashley, etc.
But instead, its multiple contacts of the same person, e-mail addresses and the best part is, when I type A, I get Rose first, 3 times...?
P.S. When I was starting my own thread, suggestions came up, and this was exactly the same problem I am having, except I have Note 2.