How are you able to tell which NPC is which? Please don't tell me that I am supposed to talk to everyone and just hope they say their own name? The only way I knew who Rymma Fiz was, was because she mentioned a topic sited in a walkthrough.

All NPCs have their names at the top of the dialog window, which opens when you talk to them.

Now if that was the case, I wouldn't have asked the question in the first place.... When I speak to someone, their picture is on the top right of the screen, and my character's picture is on the bottom left of the screen; there is no text on the screen during dialogue whatsoever.
The only workaround I have been able to come up with, is saving a lot, and replaying conversations through top menu. So far that is the ONLY way I've been able to tell, unless like I stated, they actually say their own name during the conversation. If there IS a way to turn on the option to display their names during conversations, I can't find it.

Yes, unfortunately the CD version is basically unplayable for the reason you mentioned and others of the same style.

I had the same problem, not with the names, but no text during gameplay.
I tried to turn the sound off, and the subtitles appeared.
And with them the names of the speakers above.

In another thread, someone adviced, to install the FDD version, too.
I already had the FDD version installed, so I don't know, if it works without
that install.