Yes, that's the way it's intended to work. The username and display name are there for us puny humans. W2K only cares about the user SID, which is not affected by these "cosmetic" changes....
How would I go about to do this? What would I have to use to chnage the SID? Use SID Walker? I tried this program but not sure how to use this program correctly.
Ok .. but the thing is when u logon with the new username you loose the previous profile that you were using with old username. Would I just rename the existing profile on the client's computer to the new profile?
that shouldn't happen. What are we talking about here, a domain or a workgroup? If it's a local machine account, you should just be able to right-click on it, choose Rename, then log out and log back in. If it's a domain account, you just rename it in AD. If you have roaming profiles, just keep the current location settings. You're not creating a new account, or deleting the old one, are you?
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