It does flash red when you type a name. Just enter twice and it will often show up just fine when it finally gets to the screen. There are a few names that I can't seem to type. I couldn't type cat.herder yesterday it came out cat.### lol and I checked the spelling and it was right. I tried several times and that was always the result for me.
In general, if the names don't show up when I type them it is because there is a typo in there somewhere. All the names are case sensitive. It is one of the reasons it is difficult for me to follow conversations. I am always clicking on the people to figure out exactly how to spell their name and I miss half of what is being said. (Well, that's my story and I'm sticking to it!

)