Yes of course you can change the name of the folder too.It's not so easy as clicking 2 buttons,but it's possible.So as everything else...at least to me

...
There are 2 ways.Easy way and the hard way.
EASY WAY:
1. Go to Control Panel and there create a new user account and name it however you want.For example "Mrs. Bitch" (It's just an example lol

).
2. After that move ALL the data from your old user account to the new user account including all the settings (if you want to keep old configuration (settings)).
3. Once that is done,restart the computer AND MAKE SURE YOU NOW LOG IN TO YOUR NEW USER ACCOUNT which in this case I called "Mrs. Bitch".
4. Now go to "Documents and Settings" folder and there you can delete the old user account folder which in this case I will call "Mr. Moron".
NOTE 1: If you cannot do that in Windows during you being logged into your new "Mrs. Bitch" user account and not even in SAFE MODE during you being logged into your new "Mrs. Bitch" user account,you can do it
using external OS loaded from some external media such as Linux Ubuntu from the CD-ROM disk.
NOTE 2: As a precaution if something goes wrong,you should back up the old user account folder called "Mr. Moron" before deleting it.Once you see that everything is now fine with your new "Mrs. Bitch" user account then you CAN delete the old "Mr. Moron" user account.
HARD WAY:
1. First in Control Panel in the User Accounts section change the name ti whatever you want.For example:
From: Mr. Moron
To: Mrs. Bitch
(It's just an example lol

)
2. If you are asked wether you want to keep your data private,confirm that you do.
3. Ok.So now the name is changed.Restart the computer.Once it is restarted,you can see your new name,but the folder within the "Documents and Settings" folder still contains the previous user name (from the previous user).Now you CANNOT just rename that folder because Windows won't let you do it.
4. Proceed with the following steps,but BEFORE you do,make sure that the following conditions are met:
-you must know EXACTLY what you are doing (advanced users only)...
-make a complete backup of the registry data using external OS loaded from some external media such as Linux Ubuntu from the CD-ROM disk.The location of the folder which contains all the registry data is:
C:\WINDOWS\system32\config
NOTE: "C:" drive letter is just an example.In your case it can be any other!
-make a complete backup of your user account data using external OS loaded from some external media such as Linux Ubuntu from the CD-ROM disk.The location of the folder which contains all your user account data is:
C:\Documents and Settings\Mr. Moron
Once you have done all this,you can proceed next.
5. Open REGEDIT (Windows registry editor program) and replace ALL "Mr. Moron" with "Mrs. Bitch" and make sure you save all that.
6. Load some external OS loaded from some external media such as Linux Ubuntu from the CD-ROM disk,go in the "Documents and Settings" folder and there manually rename the user account folder from old "Mr. Moron" to new "Mrs. Bitch".
7. Shut down the Ubuntu,take the CD out and shut down the computer.Turn the computer back on and that's it.
8. Weee! 
NOTE: If something went wrong and you get BSOD and cannot load back into Windows anymore,then just use Ubuntu again to return old backed up REGISTRY DATA folder called "config" and USER ACCOUNT DATA folder called "Mr. Moron" back and that's it.
Alright...I think I am done lol.