I am so incredibly terrible at this! I don't know if this is because I am in my own little world or if I need to get my hearing checked, regardless I can not pull it together when it comes to remembering peoples names...
So as I was doing some research last night I stumbled across the correct etiquette for what to do when you have forgotten the persons name that you are talking to.
Easily enough Emily Post says that you should First apologize then quickly say that you've suddenly forgotten their name.
Once the person has responded with there name quickly say thank you and go on with the conversation. There is no need to continue to apologize.
Well there you go... problem solved!