Justin said:
That reminds me of how Steven King constantly uses the town of Dairy as the setting in a lot of his novels.
That's just what I was thinking. Plus you've got Randall Flagg/Walter/Man in Black playing the villain in every other book he's written. I thought that was a pretty awesome touch myself.
As for unfamiliar names, it really depends on the genre you're writing for. If you're going for a gritty present-day drama you of course want the most normal names you can come up with, but conversely in a fantasy epic (assuming you don't mind running with the cliche') completely original names can fit the scene more appropriately.
At the moment I have one supernatural/fantasy piece that's set in the distant future, and I'm incorporating all the "fantastical" elements of it into real world principles such as evolution and genetic engineering etc. As a result it's definitely in the fantasy genre, but with a realistic grounding to it.
Anyway, the same applies to how I've gone about naming my characters - unnusual, but not unreal names.
At the moment I'm using a lot of European stuff that most people don't generally think of, such as Jeanne and Roman to name a couple. There are also characters with nicknames (a great way to introduce crazy titles into a genre like this) and others with "meaningful" surnames such as Goodchild, Darwin etc.
Ultimately I see naming policy as being subject to whatever type of story you're writing, something that can be a whole lot of fun once you find the right feel for it.