Each sequence in the sequence database needs to have a unique name, but because there may be thousands of sequences the names have to be limited in size to save memory. We chose to set the limit at 50 characters. The tools in the MEME Suite generally only consider the characters up to the first white space character when setting the name..
If you have names that are longer than 50 characters, then yes you will have to fix all those sequence names. It would be fairly straightforward to write a script that simply truncates the names at less than 50 characters, but depending on what information is being conveyed in the name, it might not be unique. You'll have to evaluate that for your sequences.