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We have claims based authentication enabled on our SharePoint 2010 environment. None of the account display names are correct for users.

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I tried the solution listed here: Inconsistent user names in SharePoint but it did not fix the issue.

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Please tag by feature or topic and not by version or product. This helps to attract more attention to your question and keep it relevant. See How do I use tags for general guidelines. Thanks! –  Alex Angas Aug 31 '11 at 3:44
    
Do you have the User Profile Service Application configured to sync profiles with AD? And is it syncing? –  John Chapman Sep 10 '11 at 2:25
    
If you goto Central Administration > Manage Service Applications > User Profile Service Application, do you have profile sync setup with Active Directory? And if so, if you search for your user profile, does it come up with the right details? –  John Chapman Sep 12 '11 at 4:25
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Usernames display as "domain\username" when User Profile Synchronziation has not yet been configured or there is issues with the service application / synchronization once it has been setup. Here is the MS TechNet information on how to configure User Profile Sync - http://technet.microsoft.com/en-us/library/ee721049.aspx.

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First you have to setup the User Profile Sync service. If you dont want to wait until it will update you can use this approach: Having fun with the SharePoint Welcome.ascx control

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