Doesn't work that well eiher. I tried to give my character a Klingon name,
[First]K'Tar[/First] [Middle]son of[/Middle] [Last]Karana[/Last]
I was promptly adressed as "Karana" by the Admiral.
I think most of the characters will address you by your nickname, which I think is your last name by default, but that's easy to change. One thing you could have done to address the few times you are referred to by last name would be to set the name to display LAST MIDDLE FIRST and change the name to [First]Karana[/First] [Middle]son of[/Middle] [Last]K'Tar[/Last] That way, your character will still be K'Tar son of Karana, but characters will refer to you as K'Tar.
What I would like to see is an option to set the preferred formal name that characters refer to you as when they're not referring to you by your nickname.