Had my first test user join this evening and noticed on the Newsfeed it just says "joined our site!" but doesn't show her username. I also can't see usernames if I mouse over the avatars or in profiles.
I have a "dev" site installed in a different directory with the same settings on Profile questions and it shows the username at the top of the profile page, in the activity feeds and on mouseover of the avatar.
I'm really hoping this is just something simple I flipped a switch on because I just spent two days customizing the site. I don't want to have to reinstall it again.