I tried this in 1.0.4 and can't reproduce what your talking about. The URLS that you are talking about are built from the user name and not the users full name. If the user has selected to keep that information private then its not viewable in their profile.
We're not lying to you....honest!
This problem also occurs in 1.04. Simply hover over the avatar of a user and in the bottome right hand corner of your browser (Firefox 2) you will see a URL, such as:
One would expect to see
http://server/clearspace/people/nickname or username
Why do you think this is happening ?