I always try to think of names that the parents would actually name their baby. Some will want names that are popular at the time, in that culture, others will want fancy names - maybe the parents imagine the baby will live up to that name and become someone important.
Personally I think characters grow into their names. When I name a character, I try often try out a few different alternatives (unless the name comes to me written in stone, and I know there is no way I'll change it). After some time, the character has settled into the name, it's become part of the package. Just like with real people, I can also start liking a name I originally wasn't thrilled about when I start liking the character.