I was in a LARP once with a friend who was a professional writer, when she ran across a PC named after one of her characters, Gerrald Terrant. She bitched him out for half an hour, then went to a DM and gave him the choice of changing his name or losing his character :-).
Worst character name I have seen in a game? Tig Ol Bitties. The character was played by a female player, and yes, the character did have, err...