I think the short name has to be lowercase and letters only (no numbers, special characters or spaces). The short name setting in the config is what sets the profile settings for characters when they log into your server. The server short name gets saved with the character name to an INI file (actually 2 files per char) that holds all of the UI information. So, if you ever change your short name, all characters on your server will have to set their UI up again unless they just rename the files to the new short name.
You can change the long name to anything you want as far as I know. As long as it is unique, it should work. The long name doesn't effect players in any way. It is what is displayed on the server select list. If you change it, the only thing users will have to do is pick the new name and connect.
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