One thing: the circle effect just circles the nametag; turn it off if it gets in the way.
The Dinnerbone/ Grumm thing works for any mob( nametag or spa Note that the rainbow sheep is prior to version 1.7.4! I used Alt-PrtScn to take a picture of the screen then pasted( Ctrl-v ) the picture into my photo editor and pressed File and Save As to save it to the computer.