Answers

The names from left to right read "Aaron Jane Alf Betty Claude Erin Sarah Drew". When spoken quickly, this slurs into "Arrange in alphabetical order in third row". Which gives:

C D A E J A S B 
L R L R A A A E
A E F I N R R T <- Sort here
U W   N E O A T
D         N H Y
E              

G O D Z I L L A
I C A E N U I P
P K R B J B M P
P E K R U R E L
O R Y A N A Y E

There is ambiguity in the two R's, but they both correspond to L's in the first row of ethnic slurs anyway.