Electrical Impedance Tomography (EIT) is an imaging modality which currently shows promise for the detection and characterization of breast cancer. A very significant problem in EIT imaging is the proper modeling of the interface between the body and the electrodes. We have found empirically that it is very difficult, in a clinical setting, to assure that all electrodes make satisfactory contact with the body. In addition, we have observed a capacitive effect at the skin/electrode boundary that is spatially heterogeneous. To compensate for these problems, we have developed a hybrid nonlinearlinear reconstruction algorithm using the complete electrode model in which we first estimate electrode surface impedances, by means of a Levenberg-Marquardt iterative optimization procedure with an analytically computed Jacobian matrix. We subsequently use a linearized algorithm to perform a three-dimensional reconstruction of perturbations in both contact impedances and in the spatial distributions of conductivity and permittivity. Results show that, with this procedure, artifacts due to electrodes making poor contact can be greatly reduced. If the experimental apparatus physically applies voltages and measures currents, we show that it is preferable to compute the reconstruction with respect to the Dirichlet-to-Neumann map rather than the Neumann-to-Dirichlet map if there is a significant possibility that electrodes will be fully disconnected. Finally, we test our electrode compensation algorithms for a set of clinical data, showing that we can significantly improve the fit of our model to the measurements by allowing the electrode surface impedances to vary.