I have tried what was suggested above.
I am also trying to change someone's last name because they got married. I can log them in under their new last name but a message comes up stating that \\Server\Users\FirstOldLastname\Desktop refers to a location that is unavailable.
The rename created a new users directory and moved the files from their FirstOldlastname to this new directory.
I also created the new smtp in their properties for their FirstNewlastname and made it bold but after a unknown amount of time the system changes it back to their old name as bold but leaves the new email address. The only major difference between this question and our system is that we do not have SBS 2003 R2. We just have SBS 2003.