Evidently 3.2.5 didn't completely cause TSL to recognize the name change -- upon start up a character with a new name was still grouped in with the old savegames that had a different name. And the portrait shown would say the old name. The problem was described in this
I do believe v3.2.6 should fix that problem.
@popnole: Oops I'm sorry I didn't mean for that to come off as blunt as I now see it. What I meant to say is Welcome to the Forums