There are jQuery plugins to do text highlighting, but I've not seen one that highlights parts of words.
One possible solution would be to put all your names on the page with the first letter surrounded by a <span> tag, with a class:
<span class='A FL'>A</span>ugustine
<span class='C FL'>C</span>arlos
You can then use jQuery to fiddle with those by class name.
$('whatever').keypress(function(ev) {
var k = e.which.toUpperCase();
$('#textContainer span.FL').css('font-weight', 'normal');
$('#textContainer span.' + k).css('font-weight', 'bold');
});
Note that bold characters are fatter than normal characters, so this is going to have a "wiggly" effect that your users might not like. You might consider changing color instead.