As a DM I never had those issues, but I can remember playing in groups were people had screwy names. Let's see, there was Grumpnutz Stubyfinger (not too bad for a dwarf), Mike the Magic Man (which still makes me laugh), and my all time favorite: Ramrod the Wandwanger.
I actually enjoy putting screwy names into products I've written or worked on. In a Games Workshop supplement for Mordheim, I had called Lizardman funny names like: Tinciwinci and Whachulukinat. Also, in Where Madness Dwells we have a character named Kraven Morrhead which was a homage to the SNL Celebrity Jeopardy skits with Sean Connery. We even named the section in the module "Who is Kraven Morrhead."
Not sure if anyone ever picked up on those. . .