This appears to be returning the same results as the formula (more or less). I'm not falling through to the lookup for Connie, et al, so either I didn't figure out what to put in for test data or the logic is such that it never gets there.
HTH
Function AltEngName(varName As Variant, varShip As Variant) As Variant
On Error Resume Next
If varName = varShip Then
AltEngName = varName
ElseIf varName = vbNullString Then
AltEngName = varShip
ElseIf Len(Replace(Trim(varName), " ", " ")) = Len(Trim(varName)) Then
AltEngName = Application.WorksheetFunction.Lookup([D2], [Sheet2!$D$2:$D$110], [Sheet2!$A$2:$A$110])
ElseIf Not IsError(Application.WorksheetFunction.Match(varName, _
Array("CONNIE", "DARLENE", "MICHAEL", "MARIANO", "JAMES"))) Then
AltEngName = varShip
Else
AltEngName = varName
End If
End Function