Dilbert | 2004.06.27. I forget names. I remember people, but I forget names. So I end up in that situation a lot... and frankly, I'm sick of people who can't cope with that.
Best thing is when I really do remember the person (which is usually the case). I once had someone get a little offended because I couldn't remember her name when called on to introduce her to someone else at a party. So I rattled off the exact time and place we met (some other party); where and what she studied; mentioned a pet hate of hers and some other thing we'd talked about. "...but I have a mental block on your name. Sorry." She blinked and told me her name. Funny thing is I'm pretty sure the only thing she remembered was my name.
The other problem I have is a near-total inability to remember someone's name if they have the same name as me. People find that weird by oddly enough they can accept it much more easily :)