I worked at a GS camp and I had no problem using a camp name. I wouldn't have cared either way, but camp names are fine by me.
99% of people who don't speak Icelandic are unable to pronounce my real name anyway, and I don't have a nickname, so having a camp name was a good thing for me!
I do think that your real name and camp name persona should be the same, though.
We always told kids our names at the end of camp, sometimes earlier, and none of them really cared what my real name was, anyway. I am Dixie to them, just as I am Dixie to all of their parents and all of my co-workers. I call my camp friends by their camp names whenever I talk to them, because that is how I know them. I do know their real names, but if someone mentioned my friend Sarah to me, I would have no idea who they were talking about.
I don't think not using our "real" names made the kids trust us any less. And I say "real", because by now, I consider my real name to be Dixie, just as much as my actual real name is my name. In Icelandic, my name is Au?ur - in English, it is Dixie.
