In my work I'm forced to attend a lot of meetings, so when things are slow I'll take the list of attendees and start rearranging letters and syllables. When I start a novel I like to have a list of 30-40 names I can draw from so as to not stop my flow of writing.
I've also done the Latin thing (Latin names just sound good, IMO), and worked with some other name lists for other cultures; Wikipedia actually has some pretty good articles on names that include sample names from a given culture.
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