RPG technique, I guess

Discussing a Deadlands dime novel, which John was explaining he would not run for me as written, because I would pick up on the specific nature of the Big Bad too quickly.

(Given that it involves people going missing and places named Barlow Station and Varney Flats, I am inclined to agree with him. There was also a brief round of the standard "Oh come on, like *anybody* who hears those names wouldn't get it--why are you looking at me like that?"[1])

So. Gamergeek question, on telegraphing and place- or character-names in horror settings that drop hints (or--as in the above case--stand in the middle of the plotline jumping up and down, waving their arms, and screaming). Good? Bad? How about players having or being given knowledge the character doesn't have? How do you handle it? What's it good for?

EDIT: OhdearGod, the Deadlands canon years are late 1870s. Predates Dracula (Varney was 1845/1847, but it wasn't as big[2]). *No-one*[3] knows what a vampire is.
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[1] I occasionally find that the one downside to reading so much horror fiction, and occasionally touching on folklore, is knowing enough that even I want to yell at even perfectly reasonable characters. I am *positive* I cannot have been the only one mentally yelling at Richard Mayhew that he absolutely should not end up alone with anybody calling themselves Lamia no you idiot catch up with the others--oh, hell...
[2] Dracula's never been out of print. Little factoid that constantly amuses me.
[3] For values of "no-one" that exclude crazy information-giving or -getting types.