I answered waaay back in this thread. Since then, I've altered my habits slightly. Before, I would hardly ever change their names, but recently I've taken to changing most of the names to those more often used by English-speakers. If I can, I'll keep the same initial letter so Momi, for instance, might become Mary. There are some villager's names that I specially like, such as Safari, and those I'll leave untouched.