E-mails sent from a Drupal-powered site usually consist of just the e-mail address, but not the real name of the sender. This is especially bad when creating communities that offer multiple communication channels like invite-a-friend, private messages and other sorts of user notifications.
Personalized E-mail is a new module that provides system-wide alteration of e-mails by enhancing From and Reply-to email addresses with display names. After installing this module a recipient will see the real name of the sender (like "Some Name <foo@example.com>") instead of just its e-mail address.
This module relies on the token module to provide on-the-fly substitutions, and contains a fall back on the user's login name if the token replacement didn't yield a result (for example because a user didn't fill in the name on its profile).
Note: Token currently doesn't support profile or nodeprofile fields. To make any use from this module, it requires an enhanced version of token_user.inc that provides support for both profile and nodeprofile modules. It is included in the download.