Ok. Here is the solution to the problem that we came up with, along with possibly an issue of my own.

We decided that since they have both leveled to 70 on opposite accounts already without any problems that it would make the most sense for my brother to just buy a new second account and use my friend's name for that also. This way he will have his 70 main and his two new multiboxers all under the same name, even if it is my friends. My friend is just going to continue playing on the account with my brother's name and no one else will be using any account with that name on it either. Also, they are the only ones who will be using each of the respected accounts.

My question --

I have 3 accounts now. Two are in my name, one is an old one in my brothers name that he never played. You are allowed to transfer a character from one account to another, so long as the last name matches. Do you think any problems would arise if I bought third account under my name and transferred my character to this account? I would then have 3 characters all under my name. The only possible problem is that one would have been transferred from an account with the same last name but that wasnt me.

I called blizzards billing line and asked if transferring a character from my brothers account was ok, this is basically what he said: "You are allowed to transfer a character to another account as long as the last name is the same. However, I would not recommend transferring a character that is on someone elses account to your. If anything shady were to come up in the future and your accounts were looked into, the could see this and associate you with account sharing."

So, I don't know if I should just restart that one or if I could have some luck in telling them something such as "the name on these two is my legal first name, the name i used for this one is my conformation name, can i change it so they are all the same?"