There should only be one UIFollowTarget script per instantiated object, and it should ideally be on a simple game object, not a widget:
GameObject (UIFollowTarget, prefab root)
- UILabel (player name)
The layer must be your UI layer, and the main camera must be set to now draw the UI layer, otherwise NGUI won't be able to determine which camera should be used. Same with the UI camera -- it must not see the world. Whenever there is an issue following objects, layers are generally the cause.