I suspect Word Track Changes and all your revisions have left a bit of RefMan code that wasn't properly removed or visible. In case you haven't finished your report already, a few things to try: Try accepting all Track Changes. One of the old references may be preserved in a hidden track change somehow. Check you have no Comments, Text Boxes, or Headers/Footers with inserted references. In Word, try Revert to Original Text for the entire document. This should unformat your entire report and remove the reference list at the end. Then try generating the bibliography with this fresh start. In Word, turn Field Shading to always on (Tools > Options > View). Scan your text between reference 1 and 3 for any grey shading, or anything weird, that might indicate the code for reference 2 is stuck there. You could also cut and paste sections of the report into Notepad (which strips everything but the text), then paste it back in, then regenerate. Hope this helps!
"Overall, Reference Manager is an excellent citation manager. It is simple enough to be used out of the box and not too intimidating for a new user. Equally, though, it contains enough powerful features and customisation to satisfy advanced users." Information World Review
"It's highly recommended for anyone needing a powerful reference tool." Science