MSSQL+CRM2011 FUD: The instance name must be the same as computer name

while installing MS CRM 2011 or 2013 you get this stupid message and all activtiy grinds to a halt:

"The instance name must be the same as computer name"

it happened because you took a virtual machine template and cloned it, and renamed it, and then started to use it immediately without any consideration of the SQL server within.

You have to rename the MSSQL server.

use these commands one by one: in the master database

to query the binds 

SELECT @@Servername

to drop the invalid name 

Sp_dropserver 'OLD_SERVERNAME'

to add the correct machine name 

Sp_addserver 'ACTUAL_MACHINE_NAME',local 

These command are case sensitive, so be careful.  Finally, restart the MSSQL services, and close and reopen the MSSQL studio.
This KB tidbit applies to MSSQL 2008 R2 Enterprise, Windows Server 2008, MS CRM 2011