I was gifted with an older Macbook 2,1 running Snow leopard 10.6.8. I changed the Account user as well as Admin passwords etc.; but i can't rename the "Home" folder under "Places" when I log in as the new User, although there's a Folder in my new Name?

Changing the short name on the home folder locks out all the files belonging to that user. The file permissions are linked to the short name.

It can be changed, but it involves logging in as root, which can potentially be a hazard.

How did you create the new user? If you've done it right, the home icon in your account should have your chosen short name when you're logged in to it.

Once you have a new admin account you can delete the old account, but this must be done from System Preferences > Accounts.

To summarise -

To create a new user, go to System Prefences > Accounts.

Click the lock at the bottom left of the window and authenticate with the admin password of the account that's logged in (highlighted in the pane above).

Click on the + sign near the lock. in the pop-down, change 'Standard' to 'Administrator'.

Fill in your full name (doesn't have to be the real one!) and the Account name - Note that this is the 'short' name which will appear on the house icon and won't be easily changed later. Enter a password and verify it. Remember the password - it's a pain to reset that, too!

Click 'Create Account'. Select the new account in the left pane and ensure that the box 'Allow user to adminster this computer' is checked.

Close the Accounts window.

Log out and log back in as the new Admin.

Go back to Accounts, unlock again and authenticate with your new password.

Select the old account.

Click the - (minus) sign next to the lock. You'll get this pop-up;

Select to delete and OK.

The old account is now gone and you're the sole admin.

From there, your best bet is to use the install disc to re-install the OS and start over with Setup Assistant.

If you're currently on 10.6.8 and the install disc is the retail SL disc. you may need to erase Macintosh HD to proceed with the Installation. (so you should backup any data you have on there first).

I'm intrigued; how did you create a new account from Disk Utility on the install disc?

Certainly your description above suggests that you don't have a new account. If the home icon still has the original name, then it's the original account you're logged in to.

Creating a new folder doesn't create an account - that has to be done either on first installation via Setup Assistant, or as described above via System Preferences > Accounts.

All accounts on the Mac will be resident in the Macintosh HD > Users folder. The logged in account will have the house icon, other accounts will be folders with the short names of the accounts.

All valid accounts folders contain the standard folder set -

The No Entry signs mean the account I'm logged into has no permission to access that user's data.

Note;

I believe there is a way to fool the OS into thinking that the Setup hasn't been run.

However, that needs some Terminal commands, and I'm not qualified to say what they are.

The method has been described in other threads, though, so I may be able to find it if I have time in the next hour or so. (Approaching bedtime over here).

The simple answer is that you haven't created a new account, you've just changed the details of the original one.

To change the short name;

http://support.apple.com/kb/HT1428?viewlocale=en_US

Follow the instructions to the letter for the OS 10.5 and later.

There are links there to the Root User enable and disable - be sure to use the procedures for OS 10.6 and don't poke around while logged in as root.