I think for fantasy name or mythological names you should use letters starting at the end of the alphabet. Like for one of my charecters(sp) I used the name Velderi. I also love the name Venus. I also revoment naming your people after Greek or Roman god or goddesses and planets. But change the lettering a little.
Oh and you can piar street names, neighborhood(sp), or past schoolnames. For the school names though I recomend you use them as the last names, not first.
I actually find a lot of inspiration for names in the most unlikely places. I've got a character called Theobroma, which is a chemical in body lotion. (She goes by Brom for short).
I'm not a fan of the 'type random letters' approach. It gets annoying when I read a story where the characters have names like Fgeghyr and Eihfuv. I have no idea how to say those names and they scream 'made up' to me. I don't recommend using commonly used words as names either.
Exotic, archaic and obscure names work well for fantasy, because most people can actually figure out how to pronounce Nozomi, Sorraia, Hildegard and Bartholomew. It's very tough to invent believable names, and it requires understanding of language particles-it's not something you can just do randomly.
What I do a lot of the time is when I get my school directory I look through it and write down all the names I think are cool or interesting. When I'm stuck on naming someone I can look through that list and find one that suits the person. When I need a name for a character that doesn't matter a ton I'll just flip to a random page of the directory, close my eyes and point to a name at random. If you don't have a school directory a phone book would work the same way too.
Or, another thing I do is I think up what the character looks/acts like and then I just think of a name that I think fills that connotation.
Good luck
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