Registration as dual national, with 2 passports in different names

[nanos]

Hi,

our family is in the process of applying for naturalisation / registration as British citizens. I have one problem, with my 4 year old son:

He is dual Egyptian / German national (by birth). Born in the UK shortly before we became "settled". We are using form MN1.

I have the following questions:

1. The form asks for "Present nationality" - should we insert both? (I assume yes)
2. Should we send in both foreign passports with the application? (I assume yes)
3. The real issue is that his German and Egyptian passports show different names, and I know that the HMPO won't generally issue a passport if a foreign passport in a different name exists. Will this be a problem? (To illustrate: If we assume that my son's name was "John Smith" and my name was "Mark Smith", then his German passport gives his name as "John Smith", but his Egyptian passport as "John Mark Smith" - i.e. it lists my first name as his middle name as is customary in Egypt.)

Any help would be appreciated!