Hi adnan, whats the problem with projection ?
did you check before projection, i dont think projection matters in topological errors
you could select them all (if they are overlapping) and select create feature (you should worry about the precision from now on)
there is tbx file called Find Adjacent & Neighboring Polygons, this toolbox gives you the neighboring polygon
from the neighboring polygon, a neighbor with the greatest identical boundary is the mother polygon, so the child should merge with the mother, but the problem is how to calculate length of identical boundary
i'm thinking on it,
i hope you could find an easier solution
btw, related topic: http://www.gisarea.com/index.php?/topic/3132-clean-overlap-polygons/