The person who discovered the bug, named Todd, has come up with a workaround. Going to "Settings" and then "Applications" and then "people" will bring up the people setting. Changing the setting "Display names by" to First, Last from Last, First will fix the problem. Another solution is to delete the last name of the recipient from the "to:" field before you send out a text message.
Let us know if you have experienced this problem, and if the workaround is taking care of it for you. You can send us a comment in the box below.
source: todd4tech via WMPoweruser