My way is probably least creative, I'm afraid.
A lot of my stuff is semi-autobiographical, so I'll take a person's name and mess with it. "Carol" might become "Carrie", for instance. And for the last name, usually I'll just either pick a common surname, or I'll pick a name that reminds me of the person's name in some way.
Like I said, not the most creative way in the world.
