I generally leave the real-world languages alone, except when I want to create an in-joke.
I have a knack for pulling fantasy names from my sleeve (or so my gaming group says), generally based on the names of Middle-Earth, Forgotten Realms, and the Warhammer World.
Examples:
Elves: Illanthiel, Aeduian, Thelantias
Dwarves: Grimnar, Drong, Thrummir
Gnomes: Schleppeck, Zoftich, Dalzau
Halflings: Olpar, Sando, Thom
For humans, the names depend entirely on the culture. In my current, Warhammer-based campaign, the names are either German (for people of the Empire) or French (for Bretonnians). In Forgotten Realms, I generally just string some syllables together into a pronounceable whole.