Is this true?

[Prussian to the Iron]

Changing settlement names probably will screw up the script... at least it does in EB I.

not if you do it right. (this is for EB 1) simply go to preferences in the normal R:TW directory and go all the way to the bottom of preferences.txt. at the end it should say

edit_settlement_names FALSE

or something like that. simply backspace false and type TRUE in its place.

then, in-game, double click on a settlement, and at the top it should say the name. click on the name and backspace it all. then type in the name you would like and press the check at the bottom that closes the settlement page, and it should show up on the campaign map and the setlement page as your custom name.