Don't think you can change the distance.
As for the name size...
-copy eq2ui_proxyactor.xml from Default to a custom folder
-open it with notepad and search for this line:
Code:
<Text BackgroundColor="#FF00FF" Cursor="/Cursor.Text" ExtendedTooltip="Displays chat messages." Font="/Fonts.FontZapf18" GetsInput="false" LocalText="[DEVL]Ambassador Rotnaff of" MaxLines="1" Name="Name" ScrollExtent="317,28" ShadowStyle="/ShadowStyles.BlackOutlineNoShadow.Outline1" Size="317,28" TextAlignment="Center" TextColor="#0080FF">[DEVL]Ambassador Rotnaff of</Text>
Then just change FontZapf18 to something smaller, like FontArial14 or FontZapf15.
(Then save it and follow the instructions for loading in-game.)