My parents used what they call the "Maine Naming Scheme", that is they used my father's first and middle names as the first names (luckily for them we're both boys :P). For middle names, they took the first names of a male from each side of the family. So my brother got [dad's first name] [mother's father's first name] and I got [dad's middle name] [dad's brother's first name]. They are all biblical or otherwise common names. They would have used my dad's father's first name as my middle name, but it was an outdated name and they did not want to give that to me.

Personally, when I name my future children, I have no plans on using previous family members' names (at least not as first names, maybe middle names though). I have a boy's name picked out to offer when the time comes, and by offer I mean my first born son WILL have this name. The name I plan to use is not all that common, as far as I know, and a quick google search shows it is a last name, generally. I picked it for it's meaning.