I can't help you with a fuzzy search but if there were exact matches then you could apply a Conditional Formatting rule to the first sheet
Code:
=COUNTIF('SEARCH LIST 4 NAMES'!$A$1:$A$7,$A1)
I can't see how a fuzzy search could possibly work. After all, the "Judean People's Front" is very different from the "People's Front of Judea"