I am troubled by this problem, my intuition fails literally and I can't seem to understand why.
In how many ways can the letters in ARRANGEMENT be arranged so that there are exactly two pairs of consecutive identical letters?
My approach:
Number of ways at least two such pairs can occur is $4\choose2$*$\frac {9!}{2!*2!}$
Number of ways at least three such pairs can occur is $4\choose3$*$\frac {8!}{2!}$
Number of ways at least four such pairs can occur is $4\choose4$*$7!$
So total number of ways in which exactly 2 pairs occurs should be $4\choose2$$\frac{9!}{2!*2!}$ - $4\choose3$$\frac{8!}{2!}$ + $4\choose4$*$7!$
Your count of the number of ways you can have at least two pairs seems wrong. Perhaps if you explain your calculation, I can help you pinpoint what's wrong.
Let's count, for instance, the number $K$ of permutations in which $AA$ and $RR$ appear, but not $NN$ and not $EE$. (As there are six pairs among A, R, N, E, your final answer will be $6K$.) We have
$$K = (\text{number of perms with AA, RR}) - (\text{number of perms with AA, RR, NN}) - (\text{number of perms with AA, RR, EE}) + (\text{number of perms with AA, RR, NN, EE}).$$
So $K = 9!/(2!)^2 - 2 \cdot 8!/2! + 7! = 11 \cdot 7!.$
Therefore the answer is $6K = 66 \cdot 7! = 332640.$