When using SQLFiddle, make sure that the separator is set to GO. Also the schema build script is executed in a different connection from the run script, so a temp table created in the one is not visible in the other. This fiddle shows that your code is valid and working in SQL 2012:
MS SQL Server 2012 Schema Setup:
Query 1:
CREATE TABLE #Names
(
Name1 VARCHAR(100),
Name2 VARCHAR(100)
)
INSERT INTO #Names
(Name1, Name2)
VALUES
('Matt', 'Matthew'),
('Matt', 'Marshal'),
('Matt', 'Mattison')
SELECT * FROM #NAMES
| NAME1 | NAME2 |
--------------------
| Matt | Matthew |
| Matt | Marshal |
| Matt | Mattison |
Here a SSMS 2012 screenshot:
