I just couldn't enjoy a game with a BillyBob and a Aragorn it would spolit the setting for me. I think it is fine to use so called real names but stick with the more older sounding ones like Elizabeth as opposed to Liz ot Robert as opposed to Bob.
If you end up with a mish mash of modern sounding names and fantasy names it just pulls me out of the game and I can't take it seriously.
As for matching names I think that depends if they are all the same race from the same area then as DM you can help by making a few decisions like people from this area all have celtic sounding names and to give a list of some if players can't come up with any is realtively simple there are places online and tons of name your baby books. Just go to the bookstore and flip through one.
If you end up with a mish mash of modern sounding names and fantasy names it just pulls me out of the game and I can't take it seriously.
As for matching names I think that depends if they are all the same race from the same area then as DM you can help by making a few decisions like people from this area all have celtic sounding names and to give a list of some if players can't come up with any is realtively simple there are places online and tons of name your baby books. Just go to the bookstore and flip through one.