In my campaign, I had to enforce the Dumb Name Syndrome (or DNS for short), in which I decided that if anyone was going to give their target...er..PC a dumb name, that it was a sign that the player wasn't taking the campaign seriously, and thus would be marked for an early death. That may sound horrifyingly stifling to some, but the bulk of my players were grateful for it.

Kept things focused...
Anyways....when it came to "off-kilter" names, they were divided into three groups. The first was the people who named their characters after already established fictional characters, or people from the Bible. In my campaign, I've had...
Aragorn
Isildur
Strider
Samwise
Gollum
Rohan
Galadriel
Covenant
Menion
Balinor
Galahad
Tristram
Brother Maynard
Asterix
Panoramix
Melchizidek
Then there were the inept names
Sneeky the Thief
Ripoff the Thief
Revela the Bard
Temptra (!?!?!) the Paladin
Snivel and Sneeze (a pair of fighters)
Arogwen (a female Aragorn)
Ellechim (spell it backwards)
Lemrac (spell it backwards)
We had a player named Tim, who named his cleric...Tim
And some guy named his high fantasy AD&D thief...Frank
Wench
Lazer
Then there were the out and out dumb names
Pleighwood the Druid
Logan Ford (followed by a Roman numeral) (He was brave as Logan from Logan's Run, and as clumsy as Gerald Ford).
Nerd
Bogus
Tonka the Barbarian (he was built Tonka tough...although I guess I shouldn't complain...the guy went off to write some episodes of X-Files and Angel)
Then there were the just...odd names...not necessarily bad ones...just...odd
For instance, my daughter named one of her early characters Calista Froststar...I kept calling her Calista Flockheart, and wanted to throw some food at her.
Two players in my campaign, both of them guys named John, each created a Wizard named Marcus, ten years apart real time. When both guys eventually played in the same session, it was a riot for me to DM them.
ME: OK, Marcus gets hit for 12 hit points
John and John: Which one?
ME: Marcus the Wizard.
John and John: Which one?
ME: Yours, John...
John and John: Which one?
As a DM, the only time I give my NPCs ridiculous names is if they're either a) insane, b) using a nickname, or c) a gnome.
My favorite gnome NPC:
Chuckoblottotarquinwimbimlimberstopftangftangolebiscuitbarrel Assclown IV. Chucko for short.
My favorite gnome PC names that others used:
Berfy Germaine Zurubbabel
Isabella Leatherlungs Dragonbooger Knucklebone
