I have a project where multiple developers are using a copy of the same windows Virtual PC image (W2K3 SE SP2). Because our solution is tied to the machine-name (less than ideal, i know) all of the developers have the same machine name.
We use a VPN to connect to a remote system, upon connection we get the "Windows Error: A duplicate name exists on the network" error.
Since all development is happening locally, we're not dependent on other machines connecting to us -- only outbound connections.
I know it's best practice to change the machine name, but what's the reasoning behind this? What impact would this have?