Temporary table in SQL server causing ‘ There is already an object named’ error

You are dropping it, then creating it, then trying to create it again by using SELECT INTO. Change to:

DROP TABLE #TMPGUARDIAN
CREATE TABLE #TMPGUARDIAN(
LAST_NAME NVARCHAR(30),
FRST_NAME NVARCHAR(30))  

INSERT INTO #TMPGUARDIAN 
SELECT LAST_NAME,FRST_NAME  
FROM TBL_PEOPLE

In MS SQL Server you can create a table without a CREATE TABLE statement by using SELECT INTO

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