My migration from my old Snow Leopard MacBook to my new Lion MBP was pretty flawless. Well, other than the fact that Safari suddenly remembered Bookmarks that I deleted years ago, and I had to spend a bunch of time deleting them again.
But my previous migration from older PowerBook to MacBook had the exact problem you mentioned: a complaint about being unable to migrate a user by that name. I had to rename, but it did work, but it still threw me for a loop and left me annoyed.