In the Synchronize dialog, turn on the use of the Import dialog and see if the Import dialog will show you the mystery files.
Thanks for the suggestion but the Import Dialog was turned on. Still doesn't show the mystery photos.
SOLVED! Took awhile but I figured it out. Way back when I tried out Google's Picassa. Turns out when you edit a photo in Picassa, it creates a hidden folder called ".picassaoriginals". Inside that folder is a copy of the original shot before edits. Seems Lightroom when searching to synchronize photos can see these hidden folders and the photos within them. However, I guess because they are hidden, does not actually allow you to "add" the photo (doesn't even show a thumbnail). So bottom line is the Synchronize report will report these hidden photo numbers, but the program won;t show you them or let you add them. In Explorer, I had to turn on the "show hidden files" option to see them. Once I deleted them, I re-ran Lightroom Synchronize and my mystery photos were no longer showing up!
So its kind of weird Lightroom will see and count hidden photos but not be able to show/tell you anything about them.
Thanks for the follow-up!
Glad you got it resolved.