Nevermind, I figured this one out. Instead of using a standard "M" in the username, this person used the greek letter Mu html character code "Μ" or "Μ". This allows for a completly new user with the name that looks just like someone else's since the character "Mu" is not the same as M.
Here's a list of some other greek symbols that can be used for registration fake outs:
http://www.w3schools.com/tags/ref_symbols.asp
Alpha, Beta, Epsilon, Zeta, Eta, Iota, Kappa, Mu, Nu, Omicron, Rho, Tau, Upsilon, Chi
To fix it, add these to your illegal user names
AdminCP -> vBulletin Options -> User Registration Options -> Illegal User Names
...
Or if you really want to be strict about it, just add a singular semicolin like ';' to the illegal name list.