Lightroom :: Duplicate Hard Drive In Catalog Folders

I just upgraded my external hard drive and named the new drive with the exact same name as the original, lets call this HD-1. My entire LR gallery is on this drive. After doing a complete backup to the new drive I opened LR and all Folders and Collects were in their place as they should be.
 
The Problem -

When I imputed new photos, a new duplicate hard drive appeared with the exact same name HD-1 and holding the newly imported images (which were placed in a subfolder at time of import)

- So now my Catalog shows two hard drives called HD-1. For sake of this discussion I will label them HD-1a and HD-1b. HD-1a has the original photos and HD-1b has the newly imported photos.

- I tried draging the new subfolder of photos for HD-1b to HD-1a but I get a message that the folder already exists, even though it doesn't show in the HD-1a folder structure.

- I created a new sub-folder in HD-1a and was able to drag the photos into it. I then deleted the empty folder on HD-1b. As soon as this was done the duplicate hard drive, HD-1b disapeared.

- I thought this solved the problem but as I was working on images by opening them from LR into Photoshop, the HD-1b drive reappered in my catalog with the PS created files in them.

- So it looks like LR will put any newly created or improted photo file into HD-1b. I can't seem to find a way around this. For some reason LR doesn't want to write new files into HD-1a even though it recognizes it and has no problem reading the existing files.