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I'd like to know the answer too...

Our page is an e-commerce site, and Google sometimes gives the duplicate content reports for pages that don't match, but haven't got much of unique content. Thought maybe you solved the problem?

This is what are the differences between dynamic and static URLs (by Google):
http://googlewebmastercentral.blogspot.com/2008/09/dynamic-urls-vs-static-urls.html 

In short it's that static URL have a slight advantage in terms of clickthrough rates because users can easily read the urls, but the decision to use database-driven websites does not imply a significant disadvantage in terms of indexing and ranking.

Anyway the URL is static or dynamic you should keep them in one place, because redirecting a URL to another loses up to 10% value. You can read more here: http://www.seomoz.org/learn-seo/redirection

Hope this helps.

I have seen Matt Cutts video about links per page and know that too many links "may" harm the flow of link juice. But what should e-commerce sites do?

We have category pages with more than a few thousands products in each of them. So linking to each of them dilutes the PR flow?

We could use pagination, but doesn't it give a disadvantage in user experience when he needs to go 10 links deep to reach a product? And Google robots won't update the information frequently because it will be on the lowest part of our site?

Now our goal is to make all our products appear like Facebook scroll down page. We know that Google doesn't use Ajax to see more links so robots and all the users that don't have JavaScript could see the paginated results. Is it a good way to put all products and links like this?