Data Validation and Dynamic Named Ranges

NBVC, would it matter that the JanuaryOneContacts list is defined as:

=OFFSET('Background Info'!$F$5,0,0,COUNTIF('Background Info'!$F$5:$F$25,">"""),1)

The way that formula is built shouldn't really matter - I just wanted to include that to show its not a simple defined list.

Also, when I type in "January One" in B2 and then use tha that formula I get the error "The source currently evaluates to an error. Would you like to continue?" The drop down is then blank.