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Ah yeah true, you can just write names into the text, if that's where you want to put it. But a little textbox on top was exactly what I was thinking! Or perhaps on the portrait itself. I know people will want to play with it and pick the positions.

i also have to wonder if you can change the portraits based on the character emotion or if the emotes in the corner are the only option

Oh goodness this is my bad - you're right, they do look like emotes, but the emotions will indeed change the FRAME of the portrait (the emotes are just squares I put at the corners of the different frames to differentiate them). The actual emotes are the "pop-ups" that appear in little speech bubbles above the character's head.