I play on a PvP server and have found that the similar names does help, especially with the hydra style play I am trying to use.

To that end

Sýchòóôõösÿs
Sýchòsÿs Sýchósÿs Sýchôsÿs Sýchõsÿs Sýchösÿs
Ashåàáãâwk
Ashåwk Ashàwk Asháwk Ashãwk Ashâwk
Shakmáâãäå
Shakmá Shakmâ Shakmã Shakmä Shakmå

These are names I have come with for different characters over the years.. I do not know if I will actually keep using Sychosys in WoW as it was just my 'Mutlibox Test' group before moving to a PvP server. I am likely to just keep using the names I have been for years so I dont get confused.. Shakma is always my Shaman, Ashawk a druid, etc. One name, neat little characters.

One thing to this though.. It also confuses people of your own Faction. Out of two fairly solid days of playing I have had to explain 3-4 times that I am not a bug on their system seeing me 5 times, the last character in the name is different for each one, hehe.