df <- data.frame(Name=c('John Smith', 'John Smith', 'Jeff Smith'),
State=c('MI','WI','WI'), stringsAsFactors=F)
df <- within(df, Name[Name == 'John Smith' & State == 'WI'] <- 'John Smith1')
> df
Name State
1 John Smith MI
2 John Smith1 WI
3 Jeff Smith WI
** Edit **
Edited to add that you can put whatever you like in the within expression:
df <- within(df, {
f <- Name == 'John Smith' & State == 'WI'
Name[f] <- 'John Smith1'
State[f] <- 'CA'
})