The problem is the change function is not set up correctly. It needs to know the length of the strings. Your code accepted a single character pointer instead of an array of strings.
One way to do this is to define a type like this:
#define NAME_LENGTH 79
typedef char NameString[ NAME_LENGTH+1 ];
void change( NameString names[] )
{
printf( "Insert New Name1: " );
scanf( "%s", names[4] );
strcpy( names[0], names[4] );
printf( "Test 1: %s\n", names[1] );
printf( "Test 2: %s\n", names[2] );
}
void main(void)
{
NameString names[25];
printf("Name 1: ");
scanf("%s", names[0] );
printf("Name 2: ");
scanf("%s", names[1] );
printf("Name 3: ");
scanf("%s", names[2] );
change( names );
printf("Name 1: %s\n", names[0]);
printf("Name 2: %s\n", names[1]);
printf("Name 3: %s\n", names[2]);
}