We have written before about the open beta test of Display Names in Second Life. Thousands of Second Life residents have downloaded the display name project viewer and tested the feature and provided feedback.
Linden Lab is responding by making several improvements to Display Names. Below is a list.
Display Name Improvements in Second Life:
1. Default will show both Display Name and unique Username if the two do not match. Otherwise Display Name will show.
2. Usernames will be more prominently displayed in the Profile
3. Chat improvements and display of names
4. Password authentication imnprovement
5. Modifying Unicode to allow for easier copying of Display Name.
6. Chare a fee for changing Display Names
Read more here