Oh, and then there's this one...
In a different group, one player (who wasn't exactly the brightest bulb in the pack, if you catch my drift) named his ranger "Dalicon".
Now, Dalicon isn't the worst name, but for some reason we all thought Dalicon sounded like various types of pharmecuticals.
Player1: "I've got a headache."
Player2: "For tough sinus pressure, take two Dalicon."
Player1: "Oooh, the itching, the burning..."
Player2: "Rub some Dalicon into that, it'll reduce the swelling.."
etc etc. Needless to say, the player had no idea 1) how often we were mocking him, and 2) why we always started giggling like schoolgirls whenever he said his PC's name. (The things you think are funny at 1AM...)