Why does this do this?

All right. I amke a new world call is <mudname>-<character name.

Now lets say I use this name: Xaos-Chandila

However, I mispell the name and the world saves, as: Xaos-Chandila

Now I don't want Chandila, I want Chandrila.

I make a new world based on the settings of Chandila, I save the world as Xaos-Chandrila as its supposed to be, but when I open the world it still says Chandila, even though the filename is Chandrila.

Is this a bug? If so I don't mean to post in the wrong forum.

It is not a bug, there are two separate names - the disk file name (or "external name") which might be "foo.mcl" and the "internal" name, which shows up in the top of the window, in the activity list, and various dialogs.

The internal name can contain characters that are illegal in disk file names, such as "/" and "*". Thus your internal name might be:

" *** Xaos / Chandrila *** "

To change the internal name, just go to the first configuration window for that world and edit the name.

To change the disk file name, simply rename the file using the Windows Explorer or similar.