2 collections one debt

This means that you send the debt validation letter to NCO and Palisades validated the debt. If it is so, then I think that Palisades did not sell the debt to NCO, they have only authorized them to collect the debt.
Did the letter from Palisades mention anything about NCO?

The Palisades letter did not mention anything about NCO but my orignal letter/ contact from NCO listed Palisades as the orginal ceditor...

Going back it looks like Paisades is showing up on my Credit report so I will try to deal with them...

Thanks.

You should then deal with Palisades, because Palisades has only authorized NCO to collect the debt but has not sold it off to NCO. I think that you should negotiate for a PFD agreement so that as soon as you pay them off, the negative listing gets removed from your report. You can find sample PFD letter if you visit the debt settlement letters section.
How much is your total debt with Palisades?

Palisades has a very bad reputation, so be careful and make sure that they actually report acurate info on your CR. Also they like to sell paid debt to other colleciton agencies. Just FYI