Is there a way to change sql server's instance name with reinstalling everything?
Quick Google search yielded:
http://www.coderjournal.com/2008/02/how-to-change-instance-name-of-sql-server/
http://sqldbpool.wordpress.com/2008/09/03/how-to-change-sql-server-instance-name/
You'll be much much better reinstalling everything. Specially with versions SQL 2005 and later, there are just way too many things tied to your instance name: performance counters, local groups for service start and file ACLs, service names for sql and related (agent, full text) services, sql browser visibility, service master key encryption, various full-text settings, registry keys, 'local' linked server and the list can go on for pages and pages.
Remus Rusanu is right, those articles are misleading, they refer to changing the SQL Server config to change the name of the server upon which the SQL instance is running e.g. if the server has a name change etc. This has been pointed out to the author but for some reason he decided instead of putting his hands up, he'd argue the toss and mislead even more people!!!