"Mit ihm hat man Spaß."
Translation:He is fun.
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You answered your own question there. There's no direct equivalent of "He is fun". "Er ist Spaß" doesn't make any sense and "Er hat Spaß" means "He has fun" or "He is having fun".
The word "Mann" is a noun and it means man. The word "man" is translated as one or it is not even translated as it is used for general expressions: "man sagt" = it is said, "man muss" = one has to. In my dictionary it is not capitalised (except when appearing at the beginning of a sentence). It is not a noun.