Are you backing out completely? Unfortunately, you have to relaunch or you will keep getting the error message even if the name is valid.
From the Troubleshooting guide, under Error Codes:
http://nasomi.com/wiki/index.php?title= ... rror_CodesQuote:
FFXI-3322 (in Japanese)
The name you're using is invalid.
It's probably just too long. Use a shorter name, with a maximum of 13 letters.
You must relaunch the game if you get stuck on this error. ANY subsequent attempts to use ANY name will get stuck at this point until you re-launch the game.