God vindicates His name

1 Vindicate me, O God, and plead my cause against an ungodly nation; rescue me from deceitful and wicked men.

When we are saved we are definitively justified. We now have the authority to approach God on the basis of Christ work on our behalf.  Ps 5 7 "But I, by your great mercy, will come into your house; in reverence will I bow down toward your holy temple." This Psalm is teaching how the Psalmist will approach God throughout the Psalms. The main points of our relationship with God are taught in the first part of the Psalms. Now look at the Psalmist approach after he pleads Gods mercy. He says 8 "Lead me, O LORD, in your righteousness because of my enemies-- make straight your way before me." The Psalmist is teaching that he is no longer his own enemy but that he is caught in between Gods kingdom advancement and Satans opposition. The phrase  "make straight your way before me." is not really teaching  about a physical pathway but a perfect description of Gods purposes in creating every circumstance by speaking reality into existence. Thats why he then says 9 "Not a word from their mouth can be trusted; their heart is filled with destruction. Their throat is an open grave; with their tongue they speak deceit." In other words the Psalmist is saying that Gods moral purposes are not really to correct what we have done that is wrong but to overcome the description of the opposition which he calls "deceit". The kingdom of darkness that is opposed to the kingdom of light in false words that are destructive. The wicked curse the righteous. So its Gods word against all other words. 
We are sanctified in our position before God because of Christ work on our behalf. To stand in mercy is to be in a position to be opposed by Satans kingdom. The great struggle is no longer going on inside of us but with the opposition that is too strong for us...we express our dependence upon God by depending upon His vindication of us.  This is expressed in the next words  10 Declare them guilty, O God! Let their intrigues be their downfall. Banish them for their many sins, for they have rebelled against you. "Banish them" is speaking of someone who is in the nation of Israel which is Gods kingdom...or Gods perfect creation of the success of Israel in His word which is the whole counsel of God that represents the justified who are opposed by those who are speaking their own words. Banish them is to bring their words to nothing. Or to bring them to eternal judgement. It is in this context that the Psalmist view of success is God doing the work to vindicate His name. In vindicating the Psalmist purposes God is vindicating His name.