Have you done a re-boot of the computer since renaming ?

You'll laugh
http://www.sevenforums.com/tutorials/66118-drive-rename.html
Start> Computer> Right click on Hard Drive> Rename
A Guy

Hmmm, strange. OK, try this, you don't have to change the icon if you don't want, but you should be able to change the name at least. This doesn't need to be installed, it's a small stand alone executable. I use this to change my drive icons.
Drive Icon Changer
A Guy
No. Doesnt work.Download Partition Wizard Bootable CD and burn it in a CD using ImgBurn . Boot from the newly created Partition Wizard CD .... it will open all your partitions .
You cannot interchange the partition names . First rename D to any free letter, say T . Then Rename E to D , and finally rename T to E . Apply changes .
Now Shut down your computer . Open sata ports , and then join those again, in proper arrangement . Start your computer now . It should do the changes .
But Never Never touch your C drive, unless and untill you do have a complete system image backup .
The easiest way to get the proper arrangement is http://www.sevenforums.com/tutorials/1649-clean-install-windows-7-a.html .
Edit : Sorry Bill ! I am late with a harder process .
For anyone searching articles for this solution..
A workaround:
a. Open the Start Menu.
b. In the white line (Start Search) area, type regedit and press Enter.
c. Click on Continue button in the UAC prompt.
d. In regedit, go to: HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\Windows\CurrentVersion\explorer
e. In the left pane, right click on explorer.exe and click on New and Key.
f. Type DriveIcons and press Enter.
g. In the left pane, right click on DriveIcons and click on New and Key.
h. Type the drive letter (EX: E) you want to change the drive name for and press Enter.
i. In the left pane, right click on the drive letter (EX: E) and click on New and Key.
j. Type DefaultLabel and press Enter.
k. In the right pane, right click on (Default) and click on Modify.
l. To Change the Drive Name -
i. Type in a name (Ex: My DVD) and click OK.
ii. Go to step n.
m. To Restore the Default Drive Name -
i. Leave this empty and click OK.
ii. Go to step n.
n. Repeat steps i to m if you want to add another drive letter icon to change.
o. Close regedit.
