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I struggle with this. My first reaction is to say no, they should have something formal to fall back on. But then I think about it, and I can't see why it's not "OK." NNs are recognized just as readily as their longer forms, and there are names that I just don't like the "full names" that match (e.g., Max and Leo). Also, I think that we must remember that a name represents a person's identity. If the person has always been known as Nick, I don't know that he'd necessarily want to just switch to Nicholas because he has to put it on paper. More and more I lean towards just using the names you want.