Hi,
Yes, just did this myself so it's fresh, look in List Settings, Custom HTML, Signup Error (button on top), now look at bottom of page, there you see all of the error text including 'Duplicate Email Error Message' where you can change the text.
Actually sounds like you might be asking something different, do you want to ALLOW Duplicates? If so, not sure on that, perhaps there's a setting in LMP?
Dean, what you say?
-Brett