What’s in a name?
I hate coming up with NPC names; I have trouble doing it without the names sounding forced, which tends to break the mood. When I try, I come with names like Jandor Ravenwing and Eldar Strombridge or some such. Names like this serve their purpose, but I feel pretty cheesy saying them. When I trying to give my characters common American names like Carl, Lenny, Bob, etc they come across comical rather than serious, which also brings players out of the game.
The Player’s handbook (and the Character Builder) lists about 5 names per gender per race listed in the Player’s Handbooks. This is a good starting point, but who wants a whole elf village where everyone is named Lucan? Also these names imply culture but lack giving anything descriptive to the characters. We want evil characters to have evil sounding names (except in the times when we don’t). Also there’s a distinctive lack of family names (the suggested names appear to be first names). I imagine Warforged might just have one name, but we know most human societies don’t.
In addition to just making something up or picking off a list, there are also a ton of random-name generators that can be used DMs as is or for inspiration. There’s the official Wizards name generator from 3E, and a ton that can be found with a Google search, such as this Fantasy Name Generator.
How do you come up with NPC names?
RPGBN
I google a particular group of names like famous gladiator of male arabian names (for dark sun), etc…