Is there any way within CiscoWorks to notify when a duplicate ip address is found on the network?
Campus Manager User Tracking can detect duplicate IP addresses for end hosts. Again, nothing needs to be configured on the network side per se. You should need to make sure Campus is managing all of the routers in your network so it can be aware of their ARP tables. The report is found under Campus Manager > User Tracking > Reports > Report Generator > Duplicates.